http://www.rssboard.org/rss-specificationEducation en-ussoundfsg.comClint Sorensonnohttp://soundfsg.comMon, 19 Mar 2018 14:52:58 GMTEducation Education Tue, 06 Feb 2018 21:19:47 GMTCorrection or Something More?http://soundfsg.com/correction-or-something-moreTue, 06 Feb 2018 06:00:00 GMTClint SorensonBy Clint Sorenson, Chief Investment Officer for Sound FinancialThe market, as measured by the S&P 500 is now down YTD (SPY is down -1.10%) after being up more than 7.2% just a few weeks ago. The drawdown is nothing to panic about on the surface. Drawdowns over 10% are regular occurrences in the market. ]]>By Clint Sorenson, Chief Investment Officer for Sound FinancialThe market, as measured by the S&P 500 is now down YTD (SPY is down -1.10%) after being up more than 7.2% just a few weeks ago. The drawdown is nothing to panic about on the surface. Drawdowns over 10% are regular occurrences in the market. By Clint Sorenson, Chief Investment Officer for Sound Financial

The market, as measured by the S&P 500 is now down YTD (SPY is down -1.10%) after being up more than 7.2% just a few weeks ago. The drawdown is nothing to panic about on the surface. Drawdowns over 10% are regular occurrences in the market. What is shocking, however, is how quickly this correction has occurred. In an overvalued market environment, risk can happen and it can happen fast. This is exactly what we are witnessing so far.

In our note from yesterday (intended to address Friday’s market activity), we discussed that tops are typically processes that occur over multiple trading sessions. We displayed several market indices and measures of market internals, illustrating that the positive trends remained intact. Then yesterday happened. The Dow fell over 1600 points at the low of the day and finished the day down over 4%. In fact, during a ten-minute span the Dow fell over 1000 points. To the average bystander, this appeared to be complete insanity.

Market commentators were claiming that “something broke” on CNBC, looking for someone or something to blame. Quickly you saw reports of flash crashes and out of control “computerized traders” and “quant funds”. In my opinion, none of this was to blame. I think that the market broke a key technical level by breaching the 50-day moving average and this triggered the execution of a lot of stop-loss orders. The 50-day moving average is a commonly used, short-term trend indicator, the breach of which suggests further downside.

Now the question is whether this will alter the intermediate and longer-term trends in the market. Yesterday was the first day during the sell-off where we saw a preference for safe-haven assets like Treasuries (The yield on the 10-year bond fell over 10bps). This means that investors were scrambling for liquidity and protection, something that often suggests that we are in the early innings of a much larger decline. The trends and market internals, however, are still positive over the intermediate and longer-term time frames.

I have included several charts for your review. As you will notice most of the market indices and measures of market internals are still firmly above their 200 day moving averages despite most falling below the shorter-term 50 day moving average yesterday. This implies that the long-term trend of the market is still positive despite the scary sell-off of the past few days. Furthermore, a common measure of overbought/oversold conditions, the NYSE McClellan Oscillator (click here for a description), is signaling the most oversold condition since 2011. This is useful in that it suggests that a short-term bounce may be in the cards, and that is where the true story will be told. If the bounce fails, I expect the market to test the longer-term 200 day moving average. If this subsequent test is accompanied by a widening in credit spreads and a flight to Treasuries, we may be in store for a much larger decline. Right now, this is just a much-needed correction. I will make sure to inform you if the longer-term indicators suggest taking a defensive stance.

Chart 1: JNK/TLTThe ratio of high yield bonds to long-term Treasuries remains in a risk-on posture despite the recent pullback in equities.

Chart 2: NYSE Advance-Decline LineThe correction has taken this common indicator of market internals to below the 100-day moving average. This is a key warning signal that more downside may be in store for equities.

Chart 3: S&P 500The correction has taken the S&P 500 down below the 50-day moving average changing the short-term trend of the index. However, the S&P 500 remains above both the 100 and 200 day moving averages suggesting that the long-term trend remains positive for now.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

Neither diversification nor asset allocation can ensure a profit or protect against a loss. Past performance is not indicative of future results.

]]>http://soundfsg.com/correction-or-something-moreOne Day Does Not Make a Trendhttp://soundfsg.com/one-day-does-not-make-a-trendTue, 06 Feb 2018 06:00:00 GMTSound Financial In the last 25 years, according to CNBC, there have been 18 instances--including the decline on 2/2/2018-- where the Dow has dropped at least 500 points. Using Kensho Technology, CNBC analyzed what happened to the market after this type of decline. Typically, the Dow is up 2.83 percent one week after the drop and is positive 71 percent of the time. ]]>In the last 25 years, according to CNBC, there have been 18 instances--including the decline on 2/2/2018-- where the Dow has dropped at least 500 points. Using Kensho Technology, CNBC analyzed what happened to the market after this type of decline. Typically, the Dow is up 2.83 percent one week after the drop and is positive 71 percent of the time.

In the last 25 years, according to CNBC, there have been 18 instances--including the decline on 2/2/2018-- where the Dow has dropped at least 500 points. Using Kensho Technology, CNBC analyzed what happened to the market after this type of decline. Typically, the Dow is up 2.83 percent one week after the drop and is positive 71 percent of the time. Of course, this may tell us nothing about what will happen next, but a drop of a little over 2% in the Dow is not that alarming.

Valuations and market sentiment have been euphoric and the Fed is no longer accommodative. That leaves intermarket trends and the growth in the overall economy as the only positive factors supporting the rise in stock prices. A one day drop in the Dow does not change the trend. Tops are processes that are historically formed over multiple market sessions.

Historically, long-term market tops are usually indicated by a deterioration in credit spreads and broad market internals (see the chart above). We illustrate the relationship between junk bonds and long-term Treasuries to show that risk preferences remain currently favorable. The cumulative advance-decline line of the NYSE (a dependable measure of market internal strength or weakness) also remains positive. Furthermore, the Dow and other market indices are still firmly above their 50, 100, and 200 day moving averages, which is suggestive of continued positive trends (see the chart above).

We would not be surprised if the recent decline started a run-of-the-mill correction. Besides, it has been over two years since we have seen one. Usually, we get at least one 10 percent correction per year.

A 2.5 percent decline is not a big deal. The trend is still up in most equity market indices and intermarket relationships still suggest a positive environment for risky assets. Furthermore, the economy is still accelerating upward suggesting this may simply be a flash in the pan. Until business cycle trends reverse to suggest taking a defensive posture, or trends in equities markets change, we maintain our positive outlook.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

Neither diversification nor asset allocation can ensure a profit or protect against a loss. Past performance is not indicative of future results.

]]>http://soundfsg.com/one-day-does-not-make-a-trendWhen can you expect to receive your tax documents?http://soundfsg.com/when-can-you-expect-to-receive-your-tax-documentsWed, 31 Jan 2018 06:00:00 GMTSound FinancialIt’s that time of year again when we patiently wait for all our tax documents to come in the mail, just so we can have that joyous experience of filing our tax returns! Well maybe the “joyous” part is a bit of a stretch, but nevertheless, tax time is upon us again. You may be wondering when you’ll be receiving your 1099 paperwork from Sound Financial, so we wanted to share our schedule, so you can plan accordingly.Our first batch of 1099 forms will be mailed out on Januar...]]>It’s that time of year again when we patiently wait for all our tax documents to come in the mail, just so we can have that joyous experience of filing our tax returns! Well maybe the “joyous” part is a bit of a stretch, but nevertheless, tax time is upon us again. You may be wondering when you’ll be receiving your 1099 paperwork from Sound Financial, so we wanted to share our schedule, so you can plan accordingly.Our first batch of 1099 forms will be mailed out on Januar...It’s that time of year again when we patiently wait for all our tax documents to come in the mail, just so we can have that joyous experience of filing our tax returns! Well maybe the “joyous” part is a bit of a stretch, but nevertheless, tax time is upon us again. You may be wondering when you’ll be receiving your 1099 paperwork from Sound Financial, so we wanted to share our schedule, so you can plan accordingly.

Our first batch of 1099 forms will be mailed out on January 31, 2018, with a 2nd batch going out on February 15th. There is also a batch of accounts that will have 1099’s sent on February 15th of which some affiliates are awaiting data from some issuers or pending review of information. A third batch of 1099’s for pending accounts will be sent on February 28, 2018. Lastly, all final 1099’s will be sent on March 15, 2018, and these will be considered as the final version.

Please let us know if you have questions about your 1099 or the schedule above. It is our hope that by sharing our schedule, you can plan accordingly, and your tax filing process can be a less painful process. As always, thank you for the opportunity to assist you in navigating your retirement.

]]>http://soundfsg.com/when-can-you-expect-to-receive-your-tax-documentsVolatility and Coachinghttp://soundfsg.com/volatility-and-coachingMon, 18 Dec 2017 06:00:00 GMTSound Financial If you’ve been following college football lately, you’ll notice lots of changes in the coaching ranks. This season especially, many fan bases lost patience with a coach and wanted to move on. Millions are spent just for the right to get out of an existing coach’s contract, only to spend millions more for the privilege of trying to hire the new up and comer in what is always an uncertain change. ]]>If you’ve been following college football lately, you’ll notice lots of changes in the coaching ranks. This season especially, many fan bases lost patience with a coach and wanted to move on. Millions are spent just for the right to get out of an existing coach’s contract, only to spend millions more for the privilege of trying to hire the new up and comer in what is always an uncertain change. If you’ve been following college football lately, you’ll notice lots of changes in the coaching ranks. This season especially, many fan bases lost patience with a coach and wanted to move on. Millions are spent just for the right to get out of an existing coach’s contract, only to spend millions more for the privilege of trying to hire the new up and comer in what is always an uncertain change. One change can lead to several more with programs across the country as coaching dominos begin to fall. Lots of ups and downs for coaches, players, and fans, with the only real winners being the agents. When we look at it from an investment standpoint, we can’t help but compare it to the volatility we see in the market at times and draw a few parallels to things we see in helping our clients with their retirement.

Many times, people lose patience with their investment plan and want to make a change almost instantly without giving their plan time to work. It is crucial to remember that when you work with your financial advisor to build your retirement and investment plan that it was built with the end in mind and sometimes there will not be instant success. Just like football teams experience unforeseen injuries that can drastically change a season, a retirement plan will also experience bumps and volatility. The key for clients is patience.

Consider what could be missed out on if the plan isn’t allowed to work. The great Mike Krzyzewski had a losing record in 2 of the first 3 years at Duke. Nick Saban didn’t win more than 7 games in any of his first 4 years at Michigan State and had a record of 15 – 17 when he coached the Miami Dolphins. Bill Belichick, the head coach of the 5-time Super Bowl winning New England Patriots, had a losing record in 4 of this first 5 years as a NFL head coach. Can you imagine if Duke had lost patience and fired Coach K? What if the Patriots had not gone with Coach Belichick after his less than stellar start as a NFL head coach? Sometimes something great takes time to work, and the same can be said for a retirement plan.

Of course, you can only be patient with a retirement plan if you have one! By working with a financial advisor to build a healthy retirement plan and then have regular checks to make sure the plan is working based on factual data, and not the volatility of a news cycle, you can work toward your retirement championship! Give one of our advisors a call today and allow us to help you navigate your retirement.

]]>http://soundfsg.com/volatility-and-coachingAre You Thankful But Afraid?http://soundfsg.com/are-you-thankful-but-afraidThu, 07 Dec 2017 06:00:00 GMTChris McAlpinBy Chris McAlpin(The following is expressed as the personal opinion of Chris McAlpin )Thanksgiving is a time to stop and reflect on our standard thankful lists; family, friends, life, health, wealth, etc. With so much to be thankful for it’s hard to believe we live in a world that also has so much to be fearful of. Can we be truly thankful but afraid at the same time? ]]>By Chris McAlpin(The following is expressed as the personal opinion of Chris McAlpin )Thanksgiving is a time to stop and reflect on our standard thankful lists; family, friends, life, health, wealth, etc. With so much to be thankful for it’s hard to believe we live in a world that also has so much to be fearful of. Can we be truly thankful but afraid at the same time? By Chris McAlpin

(The following is expressed as the personal opinion of Chris McAlpin )

Thanksgiving is a time to stop and reflect on our standard thankful lists; family, friends, life, health, wealth, etc. With so much to be thankful for it’s hard to believe we live in a world that also has so much to be fearful of. Can we be truly thankful but afraid at the same time? It’s an interesting question to ponder. It really comes down to who are we thankful to and do we trust that source to continue providing the things we are thankful for.

A recent article in the Wall Street Journal* about Venezuela’s Golden Generation tells a perplexing story. This generation that was born in the ‘70s, grew up in the ’80s, and graduated in the ’90s, and their potential resonated. They grew up in a time when hard work and education were highly valued, some might say Venezuela’s golden age. The article showed an image of the class of ’94 at their senior party, hanging out on the beach. In that image the cockiness of youth, and all the advantages of solid middle class with an upward trajectory were evident in their smiles and swagger. History tells us though that it wouldn’t last. This once oil rich democracy has crumbled and what was once South America’s richest nation is now one of its poorest. All the future bankers, lawyers, economists, and doctors in that 1994 picture have fled the country. The country’s rich potential no longer exists.

In my opinion, The United States once looked similar to Venezuela, swaggering and new. We are the sons and daughters of rebels who fought tyranny, of farmers who raised middle class kids, who raised bankers, lawyers, economists, and doctors. So, what, if any, is the difference? We are an extremely blessed nation and we would be remiss to forget that the very foundations of our country were built on the principles of faith and a reverence for our Creator. We were blessed because we were thankful and worshipped the Creator, and not the “created”.

Idolatry is simply the worship of the “created” instead of the “Creator”. We put our faith and joy in things or ideas that are not based on God and instead on things built by ourselves. Here is where the fear comes into play. Fear that what we’ve built will be lost or decay, which of course always happens. Fear that maybe these idols are not right or will not sustain us. On the other hand, when we put our faith in the “Creator” we know that He “will never leave you or forsake you” (Hebrews 13:5). We escape the clutches of fear by focusing on God and not what we can do on our own.

We share the example of the Venezuelan Golden Generation as an example of how quickly it can all be taken away. While there are most certainly Christ followers in Venezuela, as a nation they chose to follow their idols and as a result lost everything. It is very much a cautionary tale. In the United States, we have mind-boggling blessings and are capable of great generosity. Yet, we are currently in the grips of overwhelming idolatry and by failing to be thankful to the Creator, we risk the created in our land.

So while statistics look good; the economy is growing, the stock market is up, and unemployment is down, we must remember what we’ve read in Psalm 37:

Do not fret because of those who are evil and do wrong; they will soon die away. Trust in the Lord and do good; live and enjoy safety. Delight in the Lord. Commit your way to the Lord; trust Him and he will do this: make your righteous evident, vindicate you for everyone to see.

We challenge you, this Thanksgiving and Christmas, to remember where your thankfulness should be directed and be truly thankful to the One that has given us everything, including His own Son on the cross all those years ago. During this season of celebration, put your focus on Him and recognize that without Him, we have nothing. When you do, the fear fades away and you are only left with thanksgiving!

]]>http://soundfsg.com/are-you-thankful-but-afraidProtect Your Investments Now!http://soundfsg.com/protect-your-investments-nowTue, 21 Nov 2017 06:00:00 GMTSound FinancialAs the markets continue to grow, we are often asked how investors should respond. Many still remember 2008 and how quickly the markets turned and want to be adequately prepared when a market correction occurs. While those conversations are best had with your financial advisor to make sure that your investment plan and the subsequent decisions are based on YOUR portfolio and retirement plan, there are some general ideas to consider.With that in mind, we’d like to introduce you to Clint Sore...]]>As the markets continue to grow, we are often asked how investors should respond. Many still remember 2008 and how quickly the markets turned and want to be adequately prepared when a market correction occurs. While those conversations are best had with your financial advisor to make sure that your investment plan and the subsequent decisions are based on YOUR portfolio and retirement plan, there are some general ideas to consider.With that in mind, we’d like to introduce you to Clint Sore...As the markets continue to grow, we are often asked how investors should respond. Many still remember 2008 and how quickly the markets turned and want to be adequately prepared when a market correction occurs. While those conversations are best had with your financial advisor to make sure that your investment plan and the subsequent decisions are based on YOUR portfolio and retirement plan, there are some general ideas to consider.

With that in mind, we’d like to introduce you to Clint Sorenson. Clint serves as Sound Financial’s Chief Investment Officer through our partnership with WealthShield. When Sound Financial brought on the team at WealthSheild we added to our existing leadership team and broadened the skill set that allows us to better serve our clients. These partners provide the elements of our Rules Based Strategy that help investors make data driven investment decisions rather than news-cycle induced emotional decisions. Clint wrote an article for Forbes in December 2016 regarding market correction that still rings true today. To see the article directly in Forbes, you can go here, otherwise read below and contact your Sound Financial advisor to discuss what adjustments would be prudent for you and your overall retirement plan.

Protect Your Investments Now

Clint Sorenson

Co-Founder at WealthShield

Current economic conditions indicate a U.S. stock market decline of 40% or more by the completion of this market cycle. The dramatic rise in asset prices since 2009 has caused an extreme overvaluation of the U.S. stock market. The levels of price to sales, Tobin’s Q Ratio, market capitalization to GDP, and cyclically adjusted price to earnings ratios have reached the point where bull markets end and bear markets begin.

As the chief investment officer at an advisor services company, I find that managing private client wealth and consulting financial advisors is quite difficult today. I started my career in investment management at a major firm at the peak of the last cycle in 2007 and never heard anyone at the company say to start preparing portfolios for the potential of a stock market decline. From my perspective, it seemed as if everyone was swept into the euphoria of the growing stock market. In hindsight, 2007 was a period not unlike today, characterized by high valuations and elation. In learning from the past, now is the time to start critically thinking about how to protect investment portfolios.

How should investors protect their portfolios? The answer is relatively simple. First, stop relying on traditional static portfolios. This approach could lead to devastating losses in today’s world of high correlations and central bank manipulation. In the global financial crisis, a 60% stock and 40% bond index fell more 34%. That is a big decline for a balanced portfolio and most likely one investors will not want to withstand.

Second, reallocate assets using a strategy designed to hedge and protect a portion of the portfolio from dramatic declines. Some of the most popular strategies that have historically produced positive returns during market declines are hedge funds, managed futures and trend-following strategies. Adding managed futures to a traditional portfolio would have historically benefited an investor from 1973-2015. However, there are some challenges associated with investor behavior.

When comparing a traditional 60% stock and 40% bond portfolio to a portfolio consisting of 40% stock, 30% bonds and 30% managed futures, it is evident that venturing outside the realm of the classic balanced portfolio may be beneficial. From 1973-2015, a $1 million investment in the 60/40 portfolio would have grown to just over $59 million. That is an average annual return of 9.94% with a maximum drawdown of 33.78%. Comparatively, the same initial investment over the same test period in the 40/30/30 portfolio would have grown to nearly $100 million. That is a return of 11.28% with a maximum drawdown of 20.28%

The value of incorporating managed futures is the ability to generate positive returns and protect assets during crisis periods. During the 1973-2015 test period, the 40/30/30 portfolio would have outperformed the 60/40 portfolio in every year that the market experienced a significant decline. For instance, in 1974 the 60/40 portfolio would have dropped 16.44% for the calendar year. The 40/30/30 portfolio would have gained 1.02%. In 2008, the 60/40 declined 23.17% and the 40/30/30 portfolio fell only 12.26%.

Historically, managed futures have demonstrated the tendency to protect portfolios during stock market declines. The reason that managed futures have had strong performance during periods of market turmoil is because of their ability to invest both long (betting on positions moving up in price) and short (betting on securities moving down in price). Therefore, when markets start moving down, managed futures traders can theoretically make profits by selling.

Maintaining an allocation that includes managed futures or other hedging strategies is often easier said than done. By studying the 1973-2015 historical data more closely, it’s easy to determine when problems with investor behavior would have occurred. From 1991-1999, the traditional 60/40 strategy would have outperformed the 40/30/30 strategy in all but two years. For investors focused on short-term performance, that is a difficult pill to swallow. History indicates that “herd behavior” would have had many investors abandoning their hedged strategies in favor of the more traditional strategy shortly before the 2000-2003 market decline that caused the S&P 500 to be cut in half. The same situation would apply to the 2003-2007 period before the 2008 financial crisis.

Where are we today? From 2009-2015, the traditional 60/40 portfolio outperformed the 40/30/30 strategy. This is the time to stand your ground. Prepare for a major market correction and silence the voice that’s telling you to focus on your short-term performance. The U.S. stock market became extremely overvalued as of the end of 2013. Mean reversion, according to Grantham, Mayo, Van Otterloo & Co., often takes around seven years to occur. That means that by the year 2020, stocks should fall to fair value. Now is the wrong time to abandon protective strategies.

]]>http://soundfsg.com/protect-your-investments-nowBe on the lookout for a couple items from Sound Finanicalhttp://soundfsg.com/be-on-the-lookout-for-a-couple-items-from-sound-finanicalMon, 06 Nov 2017 06:00:00 GMTSound FinancialWe cannot overstate how grateful we are to our wonderful clients with the patience they have shown as we finalize our transition to new partnerships that allow us to serve them better. We understand this has been a laborious process, but we hope you understand it has been a labor of love. We are in the home stretch and hope you’ll bear with us just a little longer. ]]>We cannot overstate how grateful we are to our wonderful clients with the patience they have shown as we finalize our transition to new partnerships that allow us to serve them better. We understand this has been a laborious process, but we hope you understand it has been a labor of love. We are in the home stretch and hope you’ll bear with us just a little longer. We cannot overstate how grateful we are to our wonderful clients with the patience they have shown as we finalize our transition to new partnerships that allow us to serve them better. We understand this has been a laborious process, but we hope you understand it has been a labor of love. We are in the home stretch and hope you’ll bear with us just a little longer. We want to tell you about a couple of items you’ll be receiving soon and why it is important that you pay attention to them.

First, you’ll soon be hearing from us about updating your Client Management Agreement or CMA. You probably remember signing one of these this past spring, but that document only applied to the transition period. The new CMA that is needed is the 2nd phase of the original document and will allow us to continue to serve you going forward. We have a variety of ways to deliver this document to you, including simply emailing you the new form and you can sign online. This is part of our promise to use the technology we have available to make things easier for you. Be on the lookout for a call from a Sound Financial associate to get this important CMA step taken care of.

Next, we want to take this opportunity to share some new tools that will help us understand and communicate with our clients better. Every client views and responds to risk differently. Through some of our new partnerships we are working to develop new ways to better understand our clients’ feelings on risk as it relates to their investments and how we can best communicate with them regarding that risk. The first tool that we will use is called a “Behavioral Risk Questionnaire”. This helps us measure your reaction to the ups and downs of the market on an emotional level. The second tool is called “Riskalyze”. This tool helps us understand how you think about market risk on a logical level. Both of these tools will be used in conjunction by your advisor to help develop a portfolio plan and possible adjustments during reviews. It also helps us know when and how you like to be communicated with regarding volatility in the market or news cycle.

When you receive the email for the “Behavioral Risk Questionnaire” and “Riskalyze” we would ask that you try to complete each one in a single session and don’t stress about the answers. There are no right or wrong answers. Your “gut reaction” is the best way to go with these questionnaires. These should not take more than 30-45 minutes and could be taken much quicker depending on your personality. Please contact us if you have any trouble with either of these questionnaires.

Again, we greatly appreciate the trust you have put in our firm to help you navigate retirement. It is our hope that with the completion of this paperwork and the use of these new tools we can improve upon the top-level service you have come to expect from Sound Financial. Please do not hesitate to contact us if you have any questions or if we can clarify anything for you.

]]>http://soundfsg.com/be-on-the-lookout-for-a-couple-items-from-sound-finanicalDo You Have An Estate Plan?http://soundfsg.com/do-you-have-an-estate-planThu, 05 Oct 2017 05:00:00 GMTSound FinancialDid you know that you have an estate? It is made up of everything you own. Things like your home, cars, and bank accounts are obvious, but it also consists of your life insurance, personal household items, or even your furniture. ]]>Did you know that you have an estate? It is made up of everything you own. Things like your home, cars, and bank accounts are obvious, but it also consists of your life insurance, personal household items, or even your furniture. Did you know that you have an estate? It is made up of everything you own. Things like your home, cars, and bank accounts are obvious, but it also consists of your life insurance, personal household items, or even your furniture. The question is what will happen to your estate when you pass away? Who will control your possessions and ensure that your wishes are honored when you die? Also, can this ownership transfer take place in a way that limits my family the pain of legal fees, taxes, and court costs? This is why estate planning is so important and why we want to spend a moment discussing some estate planning basics.

Everyone needs an estate plan. It is not just for very wealthy people who have a lot of possessions to distribute. Estate plans can actually be more valuable to individuals of lesser means because their families cannot afford to lose out on the benefits that are left to them. Estate plans are also not just for elderly people. We never know when it will be our time to pass on and sometimes tragedies happen. Having an estate plan in place as a young adult can help make sure your wishes are observed in the event of an early death. People with children especially need to have a plan established so your wishes for your children will be clear and there will be no disagreements amongst family during a very difficult time.

An estate plan starts with either a will or a living trust. A will provides instructions for the distribution of your possessions, but does not avoid probate in many cases. The probate process can lead to extensive legal fees to complete, thus deducting from the assets your family or loved ones will receive. Some items that are jointly-owned or accounts that name a beneficiary can possibly avoid probate, but depending on the state you reside in, it is not a certainty. Many people start with a will as it is a less expensive option, but a more definitive option is a revocable living trust. A trust will be more expensive to set up, but it provides a clearer path for ownership transfer and can avoid probate in most instances. It also allows you to maintain control even after you die. When a trust is established your possessions can be distributed over time based on conditions that will have to be achieved long after your passing. A trust is managed by a trustee that ensures your wishes are honored in order for your family and loved ones to receive what you intended for them to have. A trust is especially helpful if there are minor children that need care until they are ready to receive an inheritance or in the instance when you have a loved one with special needs that will require lifetime care.

Whether you have a will or a trust, the key is having something legally binding for your family to go by after you are gone. Not having any kind of estate plan in place will lead to the state determining what happens to your estate, and most likely it will not benefit your family as you would like. If you pass away without an estate plan your assets will be distributed according to the probate laws in your state. That means the state will decide how much your spouse or children receive and with legal fees, it could only be a fraction of what they need to live on. If both parents die (in a car accident for example), the court will appoint a guardian for your children without knowing whom you would prefer to raise your children. Wouldn’t you prefer that such important things like the care of your family or who raises your children be based on your wishes? Wouldn’t you prefer to control who receives what and when?

Understanding what will happen to your estate is a very important part of a retirement plan. Sound Financial Strategies Group can help you start the process of developing an estate plan and help you connect with the attorneys when there are more complex issues required to settle. Don’t wait for someone else to decide what will happen to your estate. Call us today and start the process of developing peace of mind in this part of your retirement plan. It is one of the most considerate things you can do for your family and loves ones.

Sound Financial Strategies Group does not render legal advice and encourages all clients to contact their own attorney for legal matters and advice.

]]>http://soundfsg.com/do-you-have-an-estate-planA Thank You from Sound Financial and an Update on our Structurehttp://soundfsg.com/a-thank-you-from-sound-financial-and-an-update-on-our-structureMon, 25 Sep 2017 05:00:00 GMTSound Financial“Change is hard at first, messy in the middle, and gorgeous at the end.” – Robin SharmaTo say we’ve experienced change at Sound Financial over the last year would be a colossal understatement! We’ve changed a great deal in how our firm operates to provide the best experience and value for our clients that we can, but the one thing we’ll never change is the care we take with our clients. We just want to take a moment to say, “Thank you” for your pat...]]>“Change is hard at first, messy in the middle, and gorgeous at the end.” – Robin SharmaTo say we’ve experienced change at Sound Financial over the last year would be a colossal understatement! We’ve changed a great deal in how our firm operates to provide the best experience and value for our clients that we can, but the one thing we’ll never change is the care we take with our clients. We just want to take a moment to say, “Thank you” for your pat...“Change is hard at first, messy in the middle, and gorgeous at the end.” – Robin Sharma

To say we’ve experienced change at Sound Financial over the last year would be a colossal understatement! We’ve changed a great deal in how our firm operates to provide the best experience and value for our clients that we can, but the one thing we’ll never change is the care we take with our clients. We just want to take a moment to say, “Thank you” for your patience with us as we made our way through our transition and continuing to trust us in partnering with you as we navigate your retirement!

Now that we are on the other side of our transition, we are happy to announce that it has been a great success! We have positioned our firm to allow us to continue to provide the truly fiduciary relationship we’ve always promised and set our firm up in a fashion that allows us greater flexibility to serve our clients in the way we believe is in their best interests. This process has led us to create new partnerships that we are very excited about! Without getting too deep in the weeds, we want to share a little about how Sound Financial is now organized to help you see what has come of all our work.

One of the first areas we knew we must address in this transition was our Broker Dealer relationship with National Planning Corp. We began to see changes with NPC that we were not comfortable with for our clients. This led us to form our own hybrid Registered Investment Advisor (RIA). By being an RIA we can manage our own advisory business with more flexibility while under direct oversight from the SEC. The “hybrid” part comes in our new partnership with The Comprehensive Group/Aurora PW, which provides independent Broker Dealer services for our firm.

As we made these changes, we found we had a firm belief that we could provide an expanded and higher level of service in the areas of operations, compliance, and investments. This led our leadership team to take on new challenges with new partnerships to make Sound Financial stronger than ever.

In Operations, Joel Holden (Sound Financial’s Chief Operations Officer) will partner with an outside team named LibertyFi to help provide the best operational tools and technology available in our industry. This partnership will help our clients and employees have the tools they need to maximize their efforts in planning for retirement.

In Compliance, Danny Matthews (Sound Financial’s Chief Compliance Officer) will partner with a group named Focus 1 to maintain our compliance structure and remain compliant with the SEC and FINRA. This will also impact the way we can communicate with our clients and we believe this kind of flexibility will be crucial to our future!

Lastly, our Investments team will continue to offer our Rules Based Strategy, and now with Clint Sorenson (Sound Financial’s Outside Chief Investment Officer) joining us, our clients and advisors will benefit from a team of asset managers that greatly increases our depth of experience and market intelligence in our investment models.

Our promise to you at the beginning of the Sound 2.0 process was to eliminate “middlemen” and negotiate with each group we could to provide the best firm possible for our clients and our Sound Financial team. As we are now organized we have the ability and flexibility to truly deliver on that fiduciary promise and provide a greater and healthier offering to our clients. We are excited about what the future holds and the people that are now in place to help us adapt in the future as the world around us changes.

Finally, we praise God for the blessings He has shown us through this process. As these changes were researched and implemented over the last 3 years, we were blessed to discover new opportunities with talented, like-hearted, and like-minded people to work with in this venture. We are looking forward to these near future offerings:

1. New tools to help measure behavioral and market risk for an individual.

2. Biblically Responsible models run by our Rules Based algorithms.

3. A Tithing Trust that will help with poverty alleviation through investments made by Sound Financial.

We thank you for the trust that you put in us. We do not take that trust lightly and will continue to serve you with our best.

]]>http://soundfsg.com/a-thank-you-from-sound-financial-and-an-update-on-our-structureThe Future for Financial Advisorshttp://soundfsg.com/the-future-for-financial-advisorsFri, 28 Jul 2017 05:00:00 GMTSound FinancialWe live in a rapidly changing world these days! What was cutting edge recently may now be considered “old hat” in a very short period of time. We see this in almost every industry in the marketplace and the financial services industry is certainly no different. ]]>We live in a rapidly changing world these days! What was cutting edge recently may now be considered “old hat” in a very short period of time. We see this in almost every industry in the marketplace and the financial services industry is certainly no different. We live in a rapidly changing world these days! What was cutting edge recently may now be considered “old hat” in a very short period of time. We see this in almost every industry in the marketplace and the financial services industry is certainly no different. This led us to ask the question, “what will this rapid change in our industry mean for financial advisors and their clients?”.

It doesn’t take a crystal ball to tell you that technology will play a huge role for financial advisors in the coming days and years. Even though technology doesn’t always move as quickly in the financial arena due to regulatory issues as it might in other industries, we will still see great advances in how technology is used for financial advisory services. One area we believe technology will impact advisors is in the number of clients they are able to service in a quality manner. As firms are able to scale technological advances with client servicing, quality advisors will be able to provide the same high level of service to many more clients.

Sound Financial Strategies Group believed that these kinds of opportunities would arise, which is why over 2 years ago we began a process to position ourselves to take advantage of the changing landscape. As we laid out in our Sound 2.0 philosophy, we intend to leverage any technology we can to help us better serve our clients. We believe it is part of our responsibility as fiduciaries to provide the best tools to our advisors and our clients to best fulfill their financial advisory needs. We are excited about what the future holds and we hope you will join us for the journey!

]]>http://soundfsg.com/the-future-for-financial-advisorsSound Financial Gives Back To The Communityhttp://soundfsg.com/sound-financial-gives-back-to-the-communityFri, 14 Jul 2017 05:00:00 GMTSound FinancialEach year the Communication Workers of America branch in Mississippi honors Mrs. Rosemary Madden by awarding college scholarships in her honor and remembrance. These $500 scholarships are awarded to as many CWA members and their dependents as possible. ]]>Each year the Communication Workers of America branch in Mississippi honors Mrs. Rosemary Madden by awarding college scholarships in her honor and remembrance. These $500 scholarships are awarded to as many CWA members and their dependents as possible. Each year the Communication Workers of America branch in Mississippi honors Mrs. Rosemary Madden by awarding college scholarships in her honor and remembrance. These $500 scholarships are awarded to as many CWA members and their dependents as possible. Sound Financial Strategies Group is honored to be a part of helping the CWA honor Mrs. Rosemary Madden and help these young people pursue their higher education dreams!

At a recent luncheon, the 2017 scholarships were awarded to the following:

Recipient:

University:

Local/Member:

Allyson Tayler

Itawamba CC

Local 3517/Jonathan Taylor

Courtney Hudson

Northwest CC

Local 3516/Jeff Hudson

Cameron Cruber

Itawamba CC

Local 3517/Dale Cruber

Katlyn Hatcher

Southern Miss

Local 3514/Chris Hatcher

Brittany Hatcher

Southern Miss

Local 3514/Chris Hatcher

Congratulations to this year’s scholarship winners and to the CWA for a successful luncheon! Sound Financial is proud that we have the opportunity to be a part of such a worthy cause! Best of luck to the winners in their future endeavors!

]]>http://soundfsg.com/sound-financial-gives-back-to-the-communityAn Update of our Rules Based Strategyhttp://soundfsg.com/an-update-of-our-rules-based-strategySat, 17 Jun 2017 05:00:00 GMTSound FinancialIn 2016, we introduced a Rules Based Strategy to our clients. To review, our Rules Based Strategy is a collection of investments that have built in “rules” that tell us when an adjustment is necessary based solely on actual market data and not on the emotional ups and downs of the news cycle. Little did we know that 2016 would be an extremely volatile year in the market! ]]>In 2016, we introduced a Rules Based Strategy to our clients. To review, our Rules Based Strategy is a collection of investments that have built in “rules” that tell us when an adjustment is necessary based solely on actual market data and not on the emotional ups and downs of the news cycle. Little did we know that 2016 would be an extremely volatile year in the market! In 2016, we introduced a Rules Based Strategy to our clients. To review, our Rules Based Strategy is a collection of investments that have built in “rules” that tell us when an adjustment is necessary based solely on actual market data and not on the emotional ups and downs of the news cycle. Little did we know that 2016 would be an extremely volatile year in the market! So, you may be wondering with all the volatility of last year what adjustments were made and where are we now?

The 3 modes built into our Rules Bases Strategy are “Conservative”, “Moderate”, and “Target”, which is the most aggressive. As a reminder, you should always have an honest conversation with your financial advisor about what level of risk you are comfortable with. Every investment mix can have a different risk level but maintain the 3 modes. Prior to 2016 the investment models had been in “Target” mode for over three years. The early year volatility, the Brexit vote, and anticipation of the U.S. election resulted in our models trading 4 times. Those trades ranged from “Target”, all the way down to “Conservative” and back to “Target”, which we’ve been at since August 15, 2016. It is interesting to consider that date. That is before the U.S. election. You’ll remember the days leading up to and immediately following the election, the media was reporting all kinds of volatility, however the actual data told us to stay where we were. Since we followed the “Rules”, we’ve maintained our position as the market has grown to record levels.

This is the beauty of the Rules Based Strategy! Emotion would have told us to make a change in November, and certainly more than only 4 trades in all of 2016! When we remove emotion, and follow the data and rules our investments are kept on a more level trend line. Our goal with a Rules Based Strategy is to make investing feel more like a kiddie ride instead of the roller coaster you see on the evening news. We can all agree, when it comes to your retirement investments, the kiddie rides would do just fine! Talk to a Sound Financial advisor today to see how a Rules Bases Strategy could work for your retirement plan!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/an-update-of-our-rules-based-strategyWho is Sound Financial?http://soundfsg.com/who-is-sound-financialThu, 20 Apr 2017 05:00:00 GMTSound FinancialEach year, millions of dollars are spent to help people and companies try to understand “Who they are” a little better. That idea of self-actualization is freeing in a way that helps a person understand their strengths or weaknesses and as a result can navigate their lives in a more fulfilled way. So today we wanted to share a little self-actualization with you from our standpoint and ask the question, “Who is Sound Financial?”At Sound Financial we believe first and forem...]]>Each year, millions of dollars are spent to help people and companies try to understand “Who they are” a little better. That idea of self-actualization is freeing in a way that helps a person understand their strengths or weaknesses and as a result can navigate their lives in a more fulfilled way. So today we wanted to share a little self-actualization with you from our standpoint and ask the question, “Who is Sound Financial?”At Sound Financial we believe first and forem...Each year, millions of dollars are spent to help people and companies try to understand “Who they are” a little better. That idea of self-actualization is freeing in a way that helps a person understand their strengths or weaknesses and as a result can navigate their lives in a more fulfilled way. So today we wanted to share a little self-actualization with you from our standpoint and ask the question, “Who is Sound Financial?”

At Sound Financial we believe first and foremost that what we do must be God-honoring. We will follow biblical principles in our business practices and how we treat people. We do not apologize for our faith, but rather we embrace it! This is the primary standard we will hold to in all we do.

Next, we believe in people. We believe that no one is “just a client” or “just an employee”. Every person we work with, from our clients to our business partners, is a valuable part of making Sound Financial what it is. Like an orchestra that has many parts, we strive to see everyone work in harmony and no section is of higher value than the next.

Finally, we take the responsibility of serving our clients very seriously. We understand that your retirement plan doesn’t just impact one person, but whole families and possibly generations. We succeed when we have a positive impact on the lives and retirements of real people and real families. This means we have an obligation to do our utmost to provide the best information and tools that we can. This means we must be vigilant in always looking for ways to improve how we function. We wouldn’t be good stewards if we rested on our laurels and our clients deserve our best.

Our pledge to you and ourselves is to always hold these 3 principles in highest regard in all we do. We know there will always be market volatility and unsettling world events that cause concern, but we believe that if we hold true to “Who we are” we will continue to see success and your success is our success.

]]>http://soundfsg.com/who-is-sound-financialIntroducing Sound Financial 2.0!http://soundfsg.com/introducing-sound-financial-20Tue, 18 Apr 2017 05:00:00 GMTSound FinancialEvery person or company has a few key moments in their lives that can have long lasting implications to their growth. These defining times, when looked back on, help tell that person or company’s story, like different chapters in a novel. We believe right now is one of those defining times at Sound Financial. ]]>Every person or company has a few key moments in their lives that can have long lasting implications to their growth. These defining times, when looked back on, help tell that person or company’s story, like different chapters in a novel. We believe right now is one of those defining times at Sound Financial. Every person or company has a few key moments in their lives that can have long lasting implications to their growth. These defining times, when looked back on, help tell that person or company’s story, like different chapters in a novel. We believe right now is one of those defining times at Sound Financial. By now you’ve heard and seen a few things related to Sound 2.0, its purpose, direction and what it means for you and Sound Financial. We want to share a little about why we are looking to grow and in turn, provide an upgrade to our clients.

Since the very beginnings, Sound Financial has been concerned about you, our clients. That concern came from a word that is key to the investment community…the word is “fiduciary”. Fiduciary is the trust or confidence that is given for the benefit of another. That fiduciary attitude the advisors have puts the concern of a client above all, even themselves. That is the true living definition of the word “fiduciary”, and that attitude has served as the foundation for every hiring decision or internal process at Sound Financial all the way through today.

About two years ago the question was asked, “are there areas that could be upgraded to continue this fiduciary attitude in all areas of our services, including trading and account management?” Well after investigation, the answer was becoming clear that YES, we could upgrade our services and as an outcome provide even more benefit to you, our client. Now you’ve seen our operation and it’s efficient without excess, but when it came to the layers of people between us and Wall Street, we could see there were areas that could be changed.

These opportunities to improve are the driving force behind Sound 2.0 and all the work that has and will continue to go in to that process. We realize there will be questions from our clients along the way, and we encourage you to reach out anytime you have a question about any part of the process. You may have already visited with your advisor about Sound 2.0, but if you haven’t we will be reaching out very soon. We will continue to share information with all our clients in as timely a manner as we can. As we mentioned before, our goal will continue to be to serve our clients as their “fiduciary” every step of the way. We are excited about the future and what Sound 2.0 will bring and we think you will be too!

]]>http://soundfsg.com/introducing-sound-financial-20Why have a Rules-Based Strategy?http://soundfsg.com/why-have-a-rules-based-strategyThu, 16 Feb 2017 06:00:00 GMTSound FinancialHave you ever seen a horse drawn plow create perfectly straight lines for a garden or farm? It can be astounding to watch an unpredictable animal like a horse pull a plow in a perfect straight line when there are all kinds of distracting activities going on around it. How does the animal not veer off course? ]]>Have you ever seen a horse drawn plow create perfectly straight lines for a garden or farm? It can be astounding to watch an unpredictable animal like a horse pull a plow in a perfect straight line when there are all kinds of distracting activities going on around it. How does the animal not veer off course? Have you ever seen a horse drawn plow create perfectly straight lines for a garden or farm? It can be astounding to watch an unpredictable animal like a horse pull a plow in a perfect straight line when there are all kinds of distracting activities going on around it. How does the animal not veer off course? All it would take is a simple turn of the head to change how the row would be plowed, which in turn would impact all the rows! What prevents this from happening? A very important tool called “blinders” keep the horse focused while the driver keeps the horse pointed in a straight line. The blinders prevent the head turns, except when the driver wants it to happen. While it may be a simple analogy, it precisely describes how our Rules-Based strategy (the blinders) works with our Financial Advisors (the driver) to keep your retirement plan on the right course.

If you consider the horse and blinders analogy, the last 2 years have provided plenty of headlines that could have caused a “head turn”:

“Dow surges to record on stimulus hopes after Donald Trump victory – November 10, 2016

Imagine if our horse didn’t have it’s Rules-Based “blinders” on! That is why a Rules-Based strategy is a great fit for these volatile times in our market. With all the noise of a never ending news cycle the Rules-Based strategy keeps your retirement plan focused straight ahead! And when there is a need to make an adjustment or “turn the horse”, our experienced financial advisors are there to “drive” your retirement to the next row. One would not work without the other, and together they work towards a successful harvest, meaning YOUR retirement! Don’t wait any longer, contact one of our experienced Financial Advisors at Sound Financial today and start straightening out your retirement with a Rules-Based strategy!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital. There are no guarantees that any managed portfolio will meet its intended objective.

Dow Jones Industrial Average is an unmanaged index of 30 widely held securities. Indices are unmanaged and cannot be invested into directly. Past performance is no guarantee of future results.

]]>http://soundfsg.com/why-have-a-rules-based-strategyA Review of 2016 and a Look to 2017http://soundfsg.com/a-review-of-2016-and-a-look-to-2017Thu, 12 Jan 2017 06:00:00 GMTSound FinancialThe year 2016 did not lack in financial news! The biggest surprises were the Brexit decision in late June, when—despite all expectations to the contrary—the UK electorate voted to leave the EU, sending markets into a tailspin for a few days. Then, just when markets appeared to have regained their footing, the U.S. ]]>The year 2016 did not lack in financial news! The biggest surprises were the Brexit decision in late June, when—despite all expectations to the contrary—the UK electorate voted to leave the EU, sending markets into a tailspin for a few days. Then, just when markets appeared to have regained their footing, the U.S. The year 2016 did not lack in financial news! The biggest surprises were the Brexit decision in late June, when—despite all expectations to the contrary—the UK electorate voted to leave the EU, sending markets into a tailspin for a few days. Then, just when markets appeared to have regained their footing, the U.S. electorate provided the next, possibly even bigger curveball—the unexpected election of Donald Trump as 45th President of the United States.

The Fed didn't hike rates four times as they'd suggested at the end of 2015, but rather held off till December before raising interest rates just once in 2016. The U.S. markets provided some surprises of their own, with several indices reaching all-time highs more than once during the year, including the fact that the DOW is flirting with 20,000 for the first time ever!

There were many other events that surprised investors as well to round out the 2016 market year. There is little doubt 2017 will have it’s surprises as well! Can the U.S. Markets continue their growth? What will a Trump presidency look like and what impact will it have on current policies? Will the Fed raise rates any further? 2017 will definitely be an interesting year, but as we learned in 2016, it will be important to have a plan that is built on facts and data rather than the emotion a news cycle can bring. This will make a plan like our Rules Based Strategy all the more important. Our Rules Based Strategy measures the volatility in the market and provides us with data driven rules for portfolio adjustment rather than an emotional reaction to a single event. We would love to share with you how our Rules Based Strategy can impact your retirement planning. Contact us today and let one of our financial advisors help you navigate retirement with a Rules Based Strategy!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital. There are no guarantees that any managed portfolio will meet its intended objective.

Dow Jones Industrial Average is an unmanaged index of 30 widely held securities. Indices are unmanaged and cannot be invested into directly. Past performance is no guarantee of future results.

]]>http://soundfsg.com/a-review-of-2016-and-a-look-to-2017What to do with inherited stocks?http://soundfsg.com/what-to-do-with-inherited-stocksThu, 15 Dec 2016 06:00:00 GMTSound FinancialLosing a loved one is a challenging concept. Not only do you have to deal with the emotional loss, but there are several business items that must be considered. There some more obvious items to deal with like heirlooms and real estate, but what does one do when they inherit stock or securities? ]]>Losing a loved one is a challenging concept. Not only do you have to deal with the emotional loss, but there are several business items that must be considered. There some more obvious items to deal with like heirlooms and real estate, but what does one do when they inherit stock or securities? Losing a loved one is a challenging concept. Not only do you have to deal with the emotional loss, but there are several business items that must be considered. There some more obvious items to deal with like heirlooms and real estate, but what does one do when they inherit stock or securities? This may not be as simple as it would seem to deal with. Many times, the stock that is left is from a longtime employer of a loved one and there may be a sentimental connection. Or it may be that the securities that are left are from a private equity situation with a family firm. In either case since the value of stocks and securities can be very fluid, you may be asking what it best for you and your situation. Here are few steps to consider:

Take some time before doing anything. The instinct of some people is to sell immediately as the market can move quickly and there is the fear of losing value. The fact of the matter is, there are a lot of steps to consider when settling an estate and items that must be dealt with related to your loss of a loved one. In these cases, it can be good for you to wait until you have a full grasp of all it will take to settle. Take some time to consider all the factors before acting.

Calculate your tax liability. An important early step is to calculate is what the potential tax liability of selling inherited stocks may be. A common misconception some people have is a fear that they will be taxed significantly on the appreciation of the asset over the lifetime of the benefactor. This is incorrect. Federal capital-gains taxes consider the growth of a stock—one that is not in a retirement account—only from the benefactor’s date of death, not the date the benefactor purchased. Calculating the tax liabilities can be quite complicated at times, and you may want to consider getting some help from a tax professional to fully understand your liability.

Plan how you will sell. After you fully understand your tax liability, you need to plan how you will sell the stock. In most cases, investors will want to sell as the inherited stock is dominated by a single source and it could be in their best interest to diversify. However, no solution is a guarantee for everyone, so you will want to speak with your financial advisor to get a better idea of your options when planning to sell.

How will these new assets fit into your larger financial plans? The pitfall that many beneficiaries fall into with an inheritance is treating it like fun money instead of fitting it into their larger financial goals. These stocks or funds from the sale of stocks can be used to get out of debt, set up an emergency fund, or better contribute to a retirement fund. It’s possible the stocks that are left could fit nicely into your current portfolio. The key is having financial goals set up and a plan on how to get there. This way, when an inheritance comes around, you will know what to do with it, instead of scrambling and possibly losing out on taking full advantage of the gift you’ve been left.

If you have been left an inheritance of stock or simply need help in establishing your financial plans, the advisors at Sound Financial would welcome the opportunity to sit down with you and see how we can help you work toward your financial goals. Whether you are navigating retirement plans or an inheritance, you can put our many years of experience to work for you. Contact us today!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital. There are no guarantees that any managed portfolio will meet its intended objective.

Neither diversification nor asset allocation can ensure a profit or protect against a loss. Past performance is not indicative of future results.

]]>http://soundfsg.com/what-to-do-with-inherited-stocksThe Election Is Over...Now What?http://soundfsg.com/the-election-is-overnow-whatTue, 15 Nov 2016 06:00:00 GMTSound FinancialThe 2016 Presidential election has come and gone! After a long and divisive campaign, we will have new leaders and new policies. In the lead up to election day and in the early hours immediately after the winner was announced, the markets predicted major shifts as the uncertainty of a Trump administration loomed large on world markets. ]]>The 2016 Presidential election has come and gone! After a long and divisive campaign, we will have new leaders and new policies. In the lead up to election day and in the early hours immediately after the winner was announced, the markets predicted major shifts as the uncertainty of a Trump administration loomed large on world markets. The 2016 Presidential election has come and gone! After a long and divisive campaign, we will have new leaders and new policies. In the lead up to election day and in the early hours immediately after the winner was announced, the markets predicted major shifts as the uncertainty of a Trump administration loomed large on world markets. Thankfully we are already seeing the markets correct somewhat in early trading post election. Hopefully all the knee jerk reactions will level out, but we are left asking how will the Trump presidency impact the market and your retirement planning?

The truth is no one knows for sure how the market will respond to President-Elect Trump. There will be certain industries that may see major changes as he lays out his plans for the country. Based the rhetoric in the campaign we can expect to see changes with healthcare legislation, trade deals with foreign leaders, and immigration. But as we have seen with presidential campaigns before, what is said on the trail may not be what happens in the White House

It is likely the coming changes will cause some volatility in the markets, but with the events of the last 12 months, most investors are no strangers to volatility. The important thing to remember with market volatility is maintaining your retirement plan and adjusting based on real data and not the emotion of a news cycle. The Rules Based Strategy we employ at Sound Financial provides such a plan! Our Rules Based Strategy measures the volatility in the market and provides us with data driven rules for portfolio adjustment rather than an emotional reaction to a single event. We would love to share with you how our Rules Based Strategy can impact your retirement planning. Contact us today and let one of our financial advisors help you navigate retirement with a Rules Based Strategy!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital. There are no guarantees that any managed portfolio will meet its intended objective.

]]>http://soundfsg.com/the-election-is-overnow-whatA Look Back At The Summerhttp://soundfsg.com/a-look-back-at-the-summerSun, 11 Sep 2016 05:00:00 GMTSound FinancialIt’s hard to believe this summer is wrapping up with kids returning to school and the sounds of football season in the air! When the summer began there was a lot of uncertainty in what the markets would do. The “Brexit” was about to be voted on and the presidential primaries were still in progress. ]]>It’s hard to believe this summer is wrapping up with kids returning to school and the sounds of football season in the air! When the summer began there was a lot of uncertainty in what the markets would do. The “Brexit” was about to be voted on and the presidential primaries were still in progress. It’s hard to believe this summer is wrapping up with kids returning to school and the sounds of football season in the air! When the summer began there was a lot of uncertainty in what the markets would do. The “Brexit” was about to be voted on and the presidential primaries were still in progress. Emotions were running high and investors were nervous.

So how did it go? The Brexit vote surprised everyone when Great Britain voted to leave the European Union and their leadership structure crumbled. The primaries have ended and are taking us down a path for a historic election. When we look back at the markets though there was definitely some volatility around those events, but the interesting item through all that was going on, the Dow Jones, S&P 500, NYSE, and Nasdaq are all at higher points today than they were at the beginning of the summer! So after all the doom and gloom we heard in the media, from a market stand point there was overall growth.

We make this point to illustrate the importance of avoiding emotion and knee jerk reactions to world news and how it can impact the markets. At Sound Financial we accomplish this with a Rules Based Strategy that drives our decisions with facts and data. By following our Rules, we were able to navigate the volatility with discipline. If you would like more information on our Rules Based Strategy and how we can help you plan for retirement based on facts and not emotion, contact one of our financial advisors. We’d love the opportunity to help you Navigate Retirement!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital. The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement. There are no guarantees that any managed portfolio will meet its intended objective.

Neither diversification nor asset allocation can ensure a profit or protect against a loss. Past performance is not indicative of future results.

Indices are unmanaged measures of market conditions. Is it not possible to invest directly into an index. Past performance is not a guarantee of future results.

]]>http://soundfsg.com/a-look-back-at-the-summerWhat Does the Brexit Mean for You?http://soundfsg.com/what-does-the-brexit-mean-for-youMon, 27 Jun 2016 05:00:00 GMTSound FinancialAs you are surely aware, the United Kingdom voted yesterday to leave the European Union. There are a number reasons that are being floated for why the people of the UK would vote for this; primarily the belief it will slow or stop immigration and the perception that they would gain more control over their budget. This vote has already lead to the UK Prime Minister’s resignation, and most likely a series of other headlines will follow in the coming days. ]]>As you are surely aware, the United Kingdom voted yesterday to leave the European Union. There are a number reasons that are being floated for why the people of the UK would vote for this; primarily the belief it will slow or stop immigration and the perception that they would gain more control over their budget. This vote has already lead to the UK Prime Minister’s resignation, and most likely a series of other headlines will follow in the coming days. As you are surely aware, the United Kingdom voted yesterday to leave the European Union. There are a number reasons that are being floated for why the people of the UK would vote for this; primarily the belief it will slow or stop immigration and the perception that they would gain more control over their budget. This vote has already lead to the UK Prime Minister’s resignation, and most likely a series of other headlines will follow in the coming days. The ramifications of this vote will be difficult to predict. It will weaken, for now, the economies of the EU and UK and we will see plenty of volatility in global markets. Of course, here at Sound Financial we are focused on how this will impact our clients, so let’s take a look.

The volatility this vote will bring will be nothing new to the US markets this year, which have seen quite a bit of volatility in the past several months. This volatility has led our Rules Based models to be in a more conservative mode year to date. We intend to maintain this conservative mode while closely watching our Rules to determine if or when an adjustment will be needed. The beauty of the Rules Based strategy is it prevents knee-jerk reactions to news cycles and helps maintain a strategy based on data and not emotion. Of course the Brexit will have ramifications because the EU is one of the US’s largest trading partners, and the UK is a close ally, but no one really knows yet the long term impact it will have on US and global markets. We would welcome any of our clients that have concerns about the Brexit or our Rules Based Strategy to contact us and discuss it with one of our financial advisors.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital. The information presented is general in nature and is not intended to provide specific advice or recommendations for any individual and does not constitute an endorsement by APW Capital. There are no guarantees that any managed portfolio will meet its intended objective.

]]>http://soundfsg.com/what-does-the-brexit-mean-for-youUnderstanding our Rules Based Strategyhttp://soundfsg.com/understanding-our-rules-based-strategyWed, 11 May 2016 05:00:00 GMTSound Financial Strategies GroupWhat a year we have had so far! *In the last 6 months, the US Markets (S&P 500) have gone through TWO 12%+ losses and recoveries! 2016 has had both one of the worst starts to a year AND one of the best recoveries ever, all within just the first 2 ½ months!* You’ve heard us talk about volatility a lot lately, and the first quarter of 2016 has been the definition of volatility! ]]>What a year we have had so far! *In the last 6 months, the US Markets (S&P 500) have gone through TWO 12%+ losses and recoveries! 2016 has had both one of the worst starts to a year AND one of the best recoveries ever, all within just the first 2 ½ months!* You’ve heard us talk about volatility a lot lately, and the first quarter of 2016 has been the definition of volatility! What a year we have had so far! *In the last 6 months, the US Markets (S&P 500) have gone through TWO 12%+ losses and recoveries! 2016 has had both one of the worst starts to a year AND one of the best recoveries ever, all within just the first 2 ½ months!* You’ve heard us talk about volatility a lot lately, and the first quarter of 2016 has been the definition of volatility! That has left a lot of our clients asking some questions like “how does Sound Financial make decisions in a market like this?” and “how does your Rules Based Strategy help?”. We’d like to try and answer a few of those questions today.

It all starts with our goals for each client at Sound Financial. They are: 1. Protect Your Capital 2. Grow Your Investments

First, we want to protect your capital because your investments only have the ability to grow if there is capital there to grow from! We strive to protect it by trying to control the amount of volatility in your investments. Adjustments are made to your investment mix that are designed to help prevent the downside losses from compounding during a difficult time in the market. If your losses continue to compound, if the market begins to move into a period of growth, your investments will take that much longer to see positive gains. To put it simply, you have to work much longer just to get back to even before you can see growth from where you originally started.

Our second goal for each client is to then grow your investments. We aim to do this by adjusting your investment mix into more growth markets as our signals indicate market growth. This will allow you as an investor the opportunity to maximize the time your investments are in a growth period, thus maximizing the potential growth for your investments.

To help accomplish these goals, we use a Rules Based Strategy to determine when to “protect” and when to “grow”. The Rules Based Strategy uses recent market performance data to determine when investment adjustments need to be made. This is important because it takes the emotion out of the equation. When you don’t have to factor in politics, world events, your “gut feeling”, or whatever you hear on the evening news into your investment decisions, you can make smarter decisions. The Rules Based process compares certain asset classes in our models against each other to determine overall market direction. The data tell us when to move to a more conservative mix to help protect your capital, or when to buy back into more of a growth mix.

What has the Rules Based Strategy meant for our clients in early 2016? Due to the volatility and market swings mentioned above, our clients have seen much more trading in their investment mix than they would normally see in a few months. This is designed to keep you positioned to help preserve your capital and prepared for the growth rebounds. We invite you to talk with your advisor to see how the Rules Based Strategy can work for you. We would encourage you to take advantage of one of the many dinners and workshops we offer, or simply give us a call at your convenience. Ultimately we are working to earn and preserve your trust as financial advisors and we firmly believe that trust comes from understanding. If we can help you in any way to better understand our Rules Based Strategy, please contact us today!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

Neither diversification nor asset allocation can ensure a profit or protect against a loss. Past performance is not indicative of future results.

Protection is positioned as an investment goal. Investing in certain securities may help to hedge against certain risks, but does not imply any guarantee from loss.

]]>http://soundfsg.com/understanding-our-rules-based-strategyRiding The Rules Based Roller Coaster!http://soundfsg.com/riding-the-rules-based-roller-coasterTue, 05 Apr 2016 05:00:00 GMTSound Financial Strategies GroupOver the last several months the US stock market (S&P 500) has been kind of crazy. In many ways it has been a lot like riding a roller coaster! In July 2015, the US Stock market (S&P 500) nearly peaked. ]]>Over the last several months the US stock market (S&P 500) has been kind of crazy. In many ways it has been a lot like riding a roller coaster! In July 2015, the US Stock market (S&P 500) nearly peaked. Over the last several months the US stock market (S&P 500) has been kind of crazy. In many ways it has been a lot like riding a roller coaster! In July 2015, the US Stock market (S&P 500) nearly peaked. In August, the same market dropped 11.2% intra month. In September, after a loop or two, it touched the bottom again; zoomed up the roller coaster hill in October to ride to the top in November, only to nose down at the end of December into a 10.4% loss by mid-February. Finally, it’s risen into an 8.9% bounce over the last few weeks. (Morningstar.com)

So you may be asking yourself, what choices do I have with my investments during these volatile times? One choice is to ride it out. Does this ride turn into 2008 and the S&P 500 lose 38% (Morningstar.com)? Or does this ride turn into 2011, in which it losses 17% intra-year only to recover within a few months? Obviously there is no way to know for sure! Sometimes you don’t know what kind of roller coaster you are going to be riding, but with Sound Financial Strategies Group you DO have a choice.

All investments have a certain degree of risk. You’ll remember that the first time you sat down with your Sound Financial advisor you discussed what kind of risk level you were comfortable with. We’ve taken those different risk levels into account with the development of our Rules Based Strategy for how we handle your investments. For some, you are comfortable with a higher risk level and sometimes your investments may feel like one of those roller coasters at Six Flags with all the loops and speed. With this risk level there is the potential for gains, but the risk of losses increases too. Many of our clients choose a much more conservative risk level which may feel more like a kiddie ride. Sure it’s a little tamer, but you don’t have to worry about losing your lunch! The chance of gains may take a little longer and require patience, but there’s a lower probability that the losses will compound, therefore making any dips easier to climb out of.

In any case, our Rules Bases Strategy monitors the markets and your investments and uses the data to tell us when adjustments need to be made. We will maintain the risk category you selected, but we will make trades to keep you in what we believe (and the facts have told us) will be the best position to withstand the dips and/or place you in a strong position when the gains occur. So the question becomes, what kind of ride do you want to be on? Whatever your answer, the advisors at Sound Financial Strategies Group have a Rules Based solution for you!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

Neither diversification nor asset allocation can ensure a profit or protect against a loss. Past performance is not indicative of future results.

]]>http://soundfsg.com/riding-the-rules-based-roller-coasterNavigating Retirement at Tax Timehttp://soundfsg.com/navigating-retirement-at-tax-timeWed, 09 Mar 2016 06:00:00 GMTSound Financial Strategies GroupAs the calendar approaches April 15th, there are few things you need to remember to help your retirement savings and reduce your taxable income. These items can ultimately have a big impact on how much your tax liability will be and can really help boost your retirement savings at the same time. Let’s take a look at a few.If you are still working, one of the easiest things you can do is increase the contributions to your 401k. ]]>As the calendar approaches April 15th, there are few things you need to remember to help your retirement savings and reduce your taxable income. These items can ultimately have a big impact on how much your tax liability will be and can really help boost your retirement savings at the same time. Let’s take a look at a few.If you are still working, one of the easiest things you can do is increase the contributions to your 401k. As the calendar approaches April 15th, there are few things you need to remember to help your retirement savings and reduce your taxable income. These items can ultimately have a big impact on how much your tax liability will be and can really help boost your retirement savings at the same time. Let’s take a look at a few.

If you are still working, one of the easiest things you can do is increase the contributions to your 401k. Since these contributions are pre-tax, you don’t have to pay taxes on this income and it goes directly toward your retirement savings. It’s like killing two birds with one stone! After you meet the maximum of your company match in your 401k, you can contribute to an IRA, possibly avoiding paying taxes on that income. Also, don’t forget about your spouse! Your spouse can have a separate IRA and contributions can be made to that in addition to your own to maximize retirement savings and minimize tax liability. Finally, if your company offers any kind of deferred compensation programs, you might want to consider taking advantage of those as well.

If you are already retired and want to reduce your tax liability, one important way is to avoid distributions from your IRA as much as possible since these distributions are taxable. We’ve found that one of the better ways to help avoid these distributions is to maximize your Social Security income and live on that to the best of your ability. One of the great things about Social Security income is that in some cases it is not taxable. For more information on what you need to know about Social Security, take a look at some our previous posts here and here. Also, if you have part-time income while you are retired, you can contribute that to an IRA for you and your spouse to lower your tax liability.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital. APW Capital does not provide tax nor legal advice.

]]>http://soundfsg.com/navigating-retirement-at-tax-timeJust Because the Market is Losing Money, It Doesn't Mean You Have To!http://soundfsg.com/just-because-the-market-is-losing-money-it-doesnt-mean-you-have-toMon, 22 Feb 2016 06:00:00 GMTSound Financial Strategies GroupIf you've been paying attention, even a little bit, you probably know that markets are having a rough year. As of February 11th the S&P 500 is down over 8% year to date. This is a significant drop and many people are wondering what to do. ]]>If you've been paying attention, even a little bit, you probably know that markets are having a rough year. As of February 11th the S&P 500 is down over 8% year to date. This is a significant drop and many people are wondering what to do. If you've been paying attention, even a little bit, you probably know that markets are having a rough year. As of February 11th the S&P 500 is down over 8% year to date. This is a significant drop and many people are wondering what to do. There are some that choose to simply ride it out, but at a rate like the drop we are seeing now, their losses are compounding and it could take a much longer time to even get back to where they started the year at. When the markets are dropping, what do you do to prevent your investments from dropping at the same rate?

At Sound Financial we are proponents of a Rules Based Strategy that works to properly manage your investments in periods of volatility like we are seeing now. These rules take into account a risk level that you are comfortable with and then based on real data (not emotion or what you hear on the news), make adjustments to help protect your investments. So when the market is performing poorly and down over 8% as we have seen, what if due to the actions of a data driven system your investments were only down half as much or possibly even a 1/4 as much as the market? These are realities that have been seen with a rules based strategy, and that allow an investor the opportunity to rebound quicker when the markets do turn. Of course nothing is guaranteed, but wouldn't it be worth it to take the time to learn about something that could help protect what you've worked a good portion of your life for? To learn more about our Rules Based Strategy, contact us at Sound Financial Strategies Group today and let us help you navigate retirement!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

Neither diversification nor asset allocation can ensure a profit or protect against a loss. Past performance is not indicative of future results.

]]>http://soundfsg.com/just-because-the-market-is-losing-money-it-doesnt-mean-you-have-toManaging Volatility with a Rules Based Strategyhttp://soundfsg.com/managing-volatility-with-a-rules-based-strategyTue, 19 Jan 2016 06:00:00 GMTSound Financial Strategies GroupHave you been watching the news or the markets this year? If you have, you've probably noticed a lot of ups and downs. These sharp jumps are sometimes referred to as "volatility". ]]>Have you been watching the news or the markets this year? If you have, you've probably noticed a lot of ups and downs. These sharp jumps are sometimes referred to as "volatility". Have you been watching the news or the markets this year? If you have, you've probably noticed a lot of ups and downs. These sharp jumps are sometimes referred to as "volatility". When the markets are volatile, investors can sometimes get very nervous. The uncertainty of trying to predict if we are heading towards a bull or bear market and at what point they should adjust can be very difficult to predict on your own. There is also the idea of compounded losses to consider during periods of increased volatility. Anyone that has ever invested knows about compounded gains; meaning as the value of your investments rise, that increased value coupled with additional growth in the investment serves as a multiplier. Unfortunately, the other side of that coin is compounded losses. When you experience compounded losses, your investments have to rebound at a higher rate to compensate for multiplied losses. Periods of volatility can be a killer for your return rate and lead to compounded losses.

One of the primary values of our Rules Based Strategy is the recognition and balance of volatility in your portfolio. We accomplish this by adjusting our allocations automatically during periods of high volatility in an attempt to minimize compounding losses. We believe helps protect your investments over the long haul and allows you to withstand lows and to be in a better position during periods of growth. Our overall message to our clients during periods of volatility is to not overreact to the sharp ups and downs, but to remember that the plan you put in place with your advisor is built to withstand the volatility and reallocate accordingly. It's all built in to the plan!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement. There are no guarantees that any managed portfolio will meet its intended objective.

Neither diversification nor asset allocation can ensure a profit or protect against a loss. Past performance is not indicative of future results.

]]>http://soundfsg.com/managing-volatility-with-a-rules-based-strategyOur Rules Based Strategyhttp://soundfsg.com/our-rules-based-strategy1Mon, 04 Jan 2016 06:00:00 GMTSound Financial Strategies Group The 2002 Oakland Athletics were not supposed to be very good. Their payroll was one of the lowest in baseball and they were losing their top players in free agency. Nevertheless they went on to win 103 games that season and go to the playoffs! ]]>The 2002 Oakland Athletics were not supposed to be very good. Their payroll was one of the lowest in baseball and they were losing their top players in free agency. Nevertheless they went on to win 103 games that season and go to the playoffs! The 2002 Oakland Athletics were not supposed to be very good. Their payroll was one of the lowest in baseball and they were losing their top players in free agency. Nevertheless they went on to win 103 games that season and go to the playoffs! They accomplished this feat by going back to the drawing board before the season and rebuilding their team with players that were right for their system. Players that might not have fit on other teams, but they had just the right skills to contribute in just the right ways for Oakland. The team’s general manager began looking at the lesser known data and statistics to find a way to put together a winner! By studying the data and having the discipline to hold true to the plan through the ups and downs of a baseball season, they found success!

At Sound Financial, we believe some of these principles fit into our investment strategy that we call our “Rules Based Strategy”. We use the knowledge and data from our investment managers to find the investments that are just the right fit for each client. Every one of our clients have different needs and different levels of risk aversion. We take this information for each client and build a customized plan with built in “rules” to help withstand the ups and downs the market will inevitably create. These “rules” are limits that are built into each client’s investment plan to help create discipline in your investing. Disciplined investors use tested rules as a guide through the ups and downs of the market and protects them from the emotions of fear, greed and the ever-present “expert opinions” they see on the news or at the local coffee shop.

We firmly believe in this Rules Based Strategy and employ it with our current clients as they navigate retirement. We’ve seen that having custom “rules” in place with each client provides the structure necessary to help manage emotions when there is volatility in the market or in the news. If you are not a current client, we’d love the opportunity to sit down with you and see how our Rules Based Strategy could help you navigate retirement. Call one of our advisors today!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/our-rules-based-strategy1Will The Changes To Social Security Impact Your Retirement Plans?http://soundfsg.com/will-the-changes-to-social-security-impact-your-retirement-plansTue, 01 Dec 2015 06:00:00 GMTSound Financial Strategies GroupAs part of the Bipartisan Budget Act 2015, Congress made some significant changes to how you are allowed to claim your Social Security. These changes could have a drastic impact on the retirement strategies of many Americans by eliminating some popular filing strategies that have been used by recipients for years to increase their benefits. The law eliminates the File & Suspend and Restricted Application provisions. ]]>As part of the Bipartisan Budget Act 2015, Congress made some significant changes to how you are allowed to claim your Social Security. These changes could have a drastic impact on the retirement strategies of many Americans by eliminating some popular filing strategies that have been used by recipients for years to increase their benefits. The law eliminates the File & Suspend and Restricted Application provisions. As part of the Bipartisan Budget Act 2015, Congress made some significant changes to how you are allowed to claim your Social Security. These changes could have a drastic impact on the retirement strategies of many Americans by eliminating some popular filing strategies that have been used by recipients for years to increase their benefits. The law eliminates the File & Suspend and Restricted Application provisions. Let’s take a look at these provisions and the consequences it could have on your retirement.

What is File-and-Suspend? File-and-Suspend is a provision in Social Security that was introduced in the year 2000. It allows a person who has reached full retirement age (typically age 66) to file for Social Security, and immediately suspend their benefits. That is a great strategy if someone wants 2 things to happen:

Wait until age 70 to start drawing Social Security – their monthly check will be 32% higher at age 70 than age 66 because of Delayed Retirement Credits.

Allow their lower-earning spouse to file for Spousal Benefits. An example of this might be a fictitious couple named Ted and Alice. In this example Ted’s benefit at 66 would be $2,000 per month and Alice’s benefit at 66 would be $600/month on her own earnings record. If Ted filed at 66 to get his benefits of $2,000, then Alice could also file and she would actually get $1,000/month (1/2 of what Ted gets) because of the Spousal Benefits provision. But, if Ted does not file at age 66 because he wants to wait until age 70, then Alice can only get $600 month because she cannot get Spousal Benefits until he files. The File-and-Suspend provision allows him to file for Social Security at age 66, and immediately suspend his benefits – his benefits continue to grow because of the Delayed Retirement Credits, and she can now file and will receive the Spousal Benefits.

What is a Restricted Application? A Restricted Application is one that restricts the scope of the application to one benefit. It can only be done at full retirement age, and it is used to restrict the application to claim the person’s Spousal Benefits only. That allows their own personal benefits to continue growing by the Delayed Retirement Credits until age 70; then they can switch from Spousal Benefits to their higher personal benefits.

As you can see, the elimination of these provisions could have a major influence on your retirement plans! Since the new law will not go into effect until May 2016, it may still be possible to take advantage of some of these provisions! Individuals that have already filed and suspended or are currently drawing their benefits in this manner will continue to receive the benefits. The important thing is to contact your financial advisor immediately to see what is the best decision for you! Contact the advisors at Sound Financial today and let us help you navigate this important retirement decision!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/will-the-changes-to-social-security-impact-your-retirement-plansThe Top 5 Things You Must Know Before Filing for Social Security!http://soundfsg.com/the-top-5-things-you-must-know-before-filing-for-social-securityTue, 27 Oct 2015 05:00:00 GMTSound Financial Strategies GroupEveryone has heard about Social Security. Every pay day, you see it come out of your check. You hear about it in the news, and sometimes wonder if it will still be there when it is time for you to retire. ]]>Everyone has heard about Social Security. Every pay day, you see it come out of your check. You hear about it in the news, and sometimes wonder if it will still be there when it is time for you to retire. Everyone has heard about Social Security. Every pay day, you see it come out of your check. You hear about it in the news, and sometimes wonder if it will still be there when it is time for you to retire. But what do you really KNOW about Social Security? Today we want to talk about the Top 5 Things You Should Know to Utilize Your Social Security Benefits. By having a good understanding of these 5 things, you can be better prepared when it is time to qualify for your Social Security and make informed decisions to take advantage of your benefits!

Your benefit is based on the 35 years in which you earned the most money. If you have fewer than 35 years of earnings, each year with no earnings will be factored in at zero. You can increase your benefit by replacing those zero years, say, by working longer, even if it's just part-time. But don't worry -- no low-earning year will replace a higher-earning year. The benefit isn't based on 35 consecutive years of work, but the highest-earning 35 years. So if you decide to phase into retirement by going part-time, you won't affect your benefit at all if you have 35 years of higher earnings. However, if you make more money, your benefit will be adjusted upward, even if you are still working while taking your benefit.

Marriage brings couples an advantage when it comes to Social Security. Namely, one spouse can take what's called a “spousal benefit”, worth up to 50% of the other spouse's benefit. Put simply, if your benefit is worth $2,000 but your spouse's is only worth $500, your spouse can switch to a “spousal benefit” worth $1,000 -- bringing in $500 more in income per month. This is contingent upon the higher earning spouse’s retirement age, but if managed correctly, it can be a great benefit for the lower earning spouse!

Like a regular spousal benefit, you can get up to 50% of an ex-spouse's benefit. And the beauty of it is that your ex never needs to know because you apply for the benefit directly through the Social Security Administration. Taking a benefit on your ex's record has no effect on his or her benefit or the benefit of your ex's new spouse. Unlike a regular spousal benefit, if your ex qualifies for benefits but has yet to apply, you can still take a benefit on the ex's record if you have been divorced for at least two years. It is also important to note: Ex-spouses can take a survivor benefit if their ex has died first, and like any survivor benefit, it will be worth 100% of what the ex-spouse received. If you remarry after age 60, you will still be eligible for the survivor benefit.

Once you hit full retirement age, you can choose to wait to take your benefit. There's a big bonus to delaying your claim -- your benefit will grow by 8% a year up until age 70! Any cost-of-living adjustments will be included, too, so you don't forgo those by waiting. Here is a benefit to delaying your claim:

While a spousal benefit doesn't include delayed retirement credits, the survivor benefit does. By waiting to take his benefit, a high-earning husband, for example, can ensure that his low-earning wife will receive a much higher benefit in the event he dies before her. That extra 32% of income could make a big difference for a widow who has lost her husband's stream of Social Security income.

There are 567 ways to collect your Social Security benefits! That’s a lot of different choices and options to get bogged down with! The fact of the matter is; these choices can be incredibly important to your retirement income. According to the Social Security Administration, some 52 percent of married couples and 74 percent of unmarried persons get half or more of their retirement income from Social Security. They also say about 22 percent of married couples and 47 percent of unmarried people rely on Social Security for 90 percent or more of their income. When the stakes are that high, you want to make the absolute best choices possible.

The financial advisors at Sound Financial Strategies Group have been working with clients to help navigate retirement and Social Security benefit decisions for over 30 years. We help our clients see the full retirement picture and assist them in making informed decisions for them. We would welcome the opportunity to visit with you and help you navigate your retirement. Give us a call today!

]]>http://soundfsg.com/the-top-5-things-you-must-know-before-filing-for-social-securityWe Answer the "Tougher" Questions!http://soundfsg.com/we-answer-the-tougher-questionsWed, 02 Sep 2015 05:00:00 GMTSound Financial Strategies GroupTo say the market went through some “ups and downs” last week would be quite the understatement! During that time there was an article in the Wall Street Journal titled, “5 Tougher Questions to Ask Your Advisor” by Karen Damato. These were some great questions that a savvy investor should be asking their advisor, so we wanted to take this opportunity to answer those questions for our clients. ]]>To say the market went through some “ups and downs” last week would be quite the understatement! During that time there was an article in the Wall Street Journal titled, “5 Tougher Questions to Ask Your Advisor” by Karen Damato. These were some great questions that a savvy investor should be asking their advisor, so we wanted to take this opportunity to answer those questions for our clients. To say the market went through some “ups and downs” last week would be quite the understatement! During that time there was an article in the Wall Street Journal titled, “5 Tougher Questions to Ask Your Advisor” by Karen Damato. These were some great questions that a savvy investor should be asking their advisor, so we wanted to take this opportunity to answer those questions for our clients. Below are the answers to those questions from the advisors at Sound Financial Strategies Group.

1.) Is it time to rebalance? If not, why?Possibly, at Sound we use a rules based approach to determine if we need to rebalance. Our rule utilizes a 365-day relative returns model of US stocks vs. US bonds. At the writing of this, our rule is very close to going either direction on the last day of the month. This can indicate if market direction has shifted from stocks to bonds. Can this create a whipsaw effect? Yes, it is possible, however, this is one part of a disciplined rules based approach to investing for the long term. The goal is not to “time the market” (as we feel that is impossible) but to invest with the overall market direction. Of course, rebalancing should be based on an individual’s risk tolerance.

2.) Are ETFs really better than mutual funds?Yes and no, ETFs can be low cost alternatives to mutual funds and in certain markets can give an investor more liquidity because they can be bought and sold at intraday prices. However, that liquidity can come at a high price because the market and floor trader set the price and the spread on that ETF. Another item to consider with an ETF is tracking error, which is the difference between the market price and the actual value of the underlying asset.

There are times that investing with an ETF instead of a mutual fund is the right decision. At Sound, we like ETFs when the underlying value of the asset is a “known” market such as Large Cap US stocks. Also, we like to use them when we are comfortable with the company that has issued the ETF, either because they are a big name company or because of our business or personal relationship with that company. We always try to save our clients fees with our investment choices but temper that with the danger of “unknown costs” associated with the markets.

3.) Do you use limit orders to limit risk? Which type?At Sound, we do very little trading in individual stocks and bonds. Therefore the traditional limit order typically does not apply to our models. However, some of our investments have a built in rules based approach to hedging with cash. For example, in some of our stock positions there is a “floor” that if the value of the security is below that percentage “floor” on a certain date, typically the last day of the month, then a certain amount of that investment is sold. Again, this is not the traditional use of a limit order and is not designed to time the market. Rather, it is designed to limit loss and risk with a specific exit strategy. We also incorporate a rules based reinvestment strategy that mirrors the exit strategy. It is often easy to make a decision to sell an investment and get out of the market. The hardest decision can be when to get back in.

4.) What might cause you to alter your asset mix?In short, changes in an individual’s risk, goals, and market direction can cause them to alter their asset mix. We take an active rules based approach to asset allocation. Yes, we study markets and economies, to make small decisions based the perceived direction of a position, for example buying or selling emerging markets, which are currently getting hit pretty hard in the most recent shake up. However, overall we build diverse rules based models based on the objectives of our clients and the risks they are will to take. The assets in these models are diversified based on the risk of those assets compared to the model and are then managed using the excess returns rule described above.

5.) What is on your shopping list?At Sound, we do not subscribe to a “shopping list” approach. While that approach can work for someone trading or investing for the short term, it is often based on the opinion of that particular investment manager. All of us are human; no one’s opinion is correct 100% of the time. If an investment manager is using a highly researched, yet opinion driven approach, it can be costly if they are wrong. Therefore, we take a diversified rules based approach. However, there may be times when we will invest in small outlier positions based on our opinion and research. The goal of these positions is to attempt to hit a “homerun”, yet we know, and communicate to our clients, that a “strikeout” is possible too. As a basic rule though, we stick mostly with our diverse rules based asset allocation to invest for the long term.

We understand that the market has been tumultuous in recent days and what you hear on the evening news may not put your mind at ease. We would encourage you to reach out to your advisor at Sound Financial Strategies Group so we can speak to you about YOUR situation and how these market fluctuations are impacting your investments. If you do not currently have a financial advisor, we would love the opportunity visit with you and provide a free consultation to see how we can help you Navigate Retirement. Give us a call today!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/we-answer-the-tougher-questionsAn Open Letter to our Clientshttp://soundfsg.com/an-open-letter-to-our-clientsTue, 25 Aug 2015 05:00:00 GMTSound Financial Strategies GroupDear Clients:The past year has been difficult for investors in the stock markets. The dollar strengthened against other currencies last year which had a negative effect on our international investments. This year the S&P 500 has struggled to remain positive while bonds (Barclay U.S. ]]>Dear Clients:The past year has been difficult for investors in the stock markets. The dollar strengthened against other currencies last year which had a negative effect on our international investments. This year the S&P 500 has struggled to remain positive while bonds (Barclay U.S. Dear Clients:

The past year has been difficult for investors in the stock markets. The dollar strengthened against other currencies last year which had a negative effect on our international investments. This year the S&P 500 has struggled to remain positive while bonds (Barclay U.S. Credit – source…Barclays Bank PLC Aug 6, 2015) are slightly negative. Volatility seems to be the norm.

We believe the U.S. Stock market as measured by the S&P 500 is in a “topping process.” This means it is potentially reaching the top of a market cycle and is therefore subject to a correction. How severe, we cannot predict.

In addition to the topping process there are at least three major issues that will come up in September. The first is the “debt ceiling” which will require Congress to raise the federal debt limit allowing the government to borrow more money to keep it running. This occurred in 2011 and caused a temporary drop in stocks due to the fear of shutting down the government. The second issue is the need for Congress to approve new funding for highways. This affects revenues to all states and could impact jobs. The third is a US Federal Reserve meeting in which they could decide to raise interest rates. While markets tend to react positively to this in the long run, in the shorter term they can react with more volatility.

It is our opinion that either of these issues combined with a potential topping process presents the opportunity for the market to react negatively. If Congress gives any indication of shutting down the government again (which may or may not occur) then it will add more fuel to the fire of a correction.

We think the biggest risk in reducing our stock exposure would be that the markets increases in value in spite of these issues and one misses a short term gain prior to moving back into stocks. Either way we expect volatility in the stock and bond markets.

Our plan is to reduce stock exposure in the month of August for all fee based accounts. Other accounts will need your authority to make changes.

Please call your advisor to discuss any questions you may have about these issues.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/an-open-letter-to-our-clientsWhat does the Greek Financial Crisis Mean for You?http://soundfsg.com/what-does-the-greek-financial-crisis-mean-for-youFri, 10 Jul 2015 05:00:00 GMTSound Financial Strategies GroupEverywhere you look, there are stories about the financial crisis in Greece. You may be wondering what is going on over there, and why should I care? Today we want to give you a quick synopsis of the problems Greeks are facing and how it can impact your investments.Greece is currently in danger of defaulting on its loans with the European Central Bank. ]]>Everywhere you look, there are stories about the financial crisis in Greece. You may be wondering what is going on over there, and why should I care? Today we want to give you a quick synopsis of the problems Greeks are facing and how it can impact your investments.Greece is currently in danger of defaulting on its loans with the European Central Bank. Everywhere you look, there are stories about the financial crisis in Greece. You may be wondering what is going on over there, and why should I care? Today we want to give you a quick synopsis of the problems Greeks are facing and how it can impact your investments.

Greece is currently in danger of defaulting on its loans with the European Central Bank. By defaulting with the ECB, Greek banks’ ability to borrow funds in the future would be in jeopardy. This fear is causing such panic that depositors are withdrawing funds at a rapid pace.

One of the main fears related to this crisis is will it cause Greece to be forced to exit the Euro group? This in turn could weaken the Euro, and cause further financial unrest in Europe. Financial markets have fallen in recent days, and many are nervous about how this will unfold. However, most agree that the direct impact on the U.S. is likely to be small.

In the short term, financial markets are likely to remain volatile. In recent days, U.S. stocks have fallen, although not as much as in Europe. Still, further declines could be expected to cut into consumer confidence and possibly spending. At the same time, oil prices have retreated again, in part because of expectations that Europe’s trouble will slow demand a bit. Lower energy costs would, on net, be a positive for American consumers, although that may prove to be short-lived.

Another factor to consider is if this crisis could force the Federal Reserve to delay its plans to for an interest rate increase. It is widely expected that the Fed was planning to raise rates in September of this year, but now some economists believe any changes might be delayed until the end of the year.

The crisis in Greece is something that we will continue to hear about and deal with in the investment community for some time, and the news can be confusing at times depending on the source. We would advise you to contact your advisor at Sound Financial Strategies Group to discuss any questions you may have and let us help you understand how these events impact you. Give us a call today!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/what-does-the-greek-financial-crisis-mean-for-youTransitioning Wealthhttp://soundfsg.com/transitioning-wealthThu, 30 Apr 2015 05:00:00 GMTSound Financial Strategies GroupSometimes it is hard to know where to pick up when someone that came before has left us. When our parents move on to eternity, we are sometimes left to pick up the pieces of an estate and unsure of what to do with the resources they left behind. You wouldn’t want to squander the inheritance they worked so hard to leave you, but where do you start? ]]>Sometimes it is hard to know where to pick up when someone that came before has left us. When our parents move on to eternity, we are sometimes left to pick up the pieces of an estate and unsure of what to do with the resources they left behind. You wouldn’t want to squander the inheritance they worked so hard to leave you, but where do you start? Sometimes it is hard to know where to pick up when someone that came before has left us. When our parents move on to eternity, we are sometimes left to pick up the pieces of an estate and unsure of what to do with the resources they left behind. You wouldn’t want to squander the inheritance they worked so hard to leave you, but where do you start? Maybe the best place to start, is the place where your parents left off.

Many times when dealing with the death of a parent, people are forced to ask themselves these exact questions either early or midway through their career. Sadly, many people have not considered investing very seriously at this point in their career. Either they haven’t started saving for retirement yet, or they simply use their company’s 401k. When this is the case, many people start where their parents left off….with the financial advisor that helped their parents. Many people will consider the fact that their parents were well prepared for their retirement and had their affairs in order at the end as a direct result of working with a financial advisor. Also, by keeping their family investment at the same place, that advisor can maintain the growth plan that their parents were on, with the 2nd generation. Finally, since you are at a different stage in your career, a financial advisor can help you maximize your greatest asset: time! By starting a long term investing plan earlier in your career, you’ll be able to do for your children, what your parents have done for you!

At Sound Financial Strategies Group, we have worked with multi-generational family wealth for decades. We have helped many 2nd generation clients maintain and grow their family wealth. In fact, we often hear clients tell us, “I wish my parents had set me up with their advisor earlier”. Whether you are the parent trying to prepare the next generation to succeed after you are gone, or the 2nd generation trying to pick of the pieces of your parent’s estate, our financial advisors can create a long term plan to help you and the generations after you. Please give us call today and let one of our advisors start you on a generational plan that will help your family for years to come!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/transitioning-wealthPassing the Torchhttp://soundfsg.com/passing-the-torchThu, 12 Mar 2015 05:00:00 GMTSound Financial Strategies GroupThroughout our lives, the greatest asset we accrue is experience. We learn from the good and bad decisions we make and apply that knowledge to new decisions that come our way. If we have children or grandchildren, one of the greatest gifts we can give them is to teach them about our experiences so that maybe they can reap the rewards of good decisions and avoid the pitfalls of the bad ones.When we look at investing, the thought process should be the same. ]]>Throughout our lives, the greatest asset we accrue is experience. We learn from the good and bad decisions we make and apply that knowledge to new decisions that come our way. If we have children or grandchildren, one of the greatest gifts we can give them is to teach them about our experiences so that maybe they can reap the rewards of good decisions and avoid the pitfalls of the bad ones.When we look at investing, the thought process should be the same. Throughout our lives, the greatest asset we accrue is experience. We learn from the good and bad decisions we make and apply that knowledge to new decisions that come our way. If we have children or grandchildren, one of the greatest gifts we can give them is to teach them about our experiences so that maybe they can reap the rewards of good decisions and avoid the pitfalls of the bad ones.

When we look at investing, the thought process should be the same. The markets will change, and world events will cause ebbs and flows in our portfolio, but a great way to help the next generation gain from your good investing is continuity. By sharing the same sound financial guidance you have received with your heirs, you are setting them up to succeed in their investments. When you introduce the next generation of your family to your financial advisor and their firm, you are helping your heirs get a leg up on their investing future. Just think, what if someone had introduced you to your current advisor earlier in your career, would you be in a better position? Could introducing your children to your investment firm early in their careers help them make wiser investments, and set them up for a more prosperous future? Will it make for an easier transition when your wealth is transferred to your heirs, if the relationship is already on a solid foundation?

At Sound Financial Strategies Group we work with clients of all ages and in many cases, multiple generations of families. Our advisors have the knowledge and experience to adjust investment strategies for whatever stage of life a family is in. We would welcome the opportunity to provide the same sound financial experience to your children or grandchildren that we have given to you over the years. Give us a call today if we can help your next generation navigate retirement as well.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/passing-the-torchManaging Risk in Good Times and Badhttp://soundfsg.com/managing-risk-in-good-times-and-badFri, 20 Feb 2015 06:00:00 GMTSound Financial Strategies GroupThe S&P 500 had an amazing year in 2014. It had an annual gain of 13.7% and many investors were left wondering, “Why didn’t my portfolio do that well?” It is easy to get caught up in the good press the S&P 500 got and is continuing to get. The S&P is included in every standard news ticker on just about every source that reports any kind of financial news in the world. ]]>The S&P 500 had an amazing year in 2014. It had an annual gain of 13.7% and many investors were left wondering, “Why didn’t my portfolio do that well?” It is easy to get caught up in the good press the S&P 500 got and is continuing to get. The S&P is included in every standard news ticker on just about every source that reports any kind of financial news in the world. The S&P 500 had an amazing year in 2014. It had an annual gain of 13.7% and many investors were left wondering, “Why didn’t my portfolio do that well?” It is easy to get caught up in the good press the S&P 500 got and is continuing to get. The S&P is included in every standard news ticker on just about every source that reports any kind of financial news in the world. Many people will view the health of our economy and their investments on the level of the S&P, but that simply isn’t a true indicator, nor should it be.

If your portfolio was invested in a single index during 2014, such as the S&P 500 index fund, it is probable that you would have had a similar return. The problem with that strategy is a lack of diversification. It is important to remember that investing, especially investing for retirement, is a marathon that has to be paced correctly and evenly. The dangers of focusing too heavily in any one index are simple: if that index has an off year, you could be ruined.

It is important to not get bogged down with everything the media throws at you. A proper investment strategy should be customized to fit a diversification model that fits YOU. There are numerous factors that will fit one investor but not another. It is certainly not a “one size fits all” business! At Sound Financial Strategies Group, our financial advisors help you create the investment plan that is best for you and your situation. We want to help you be ready for the good times and the bad. Call one of our advisors today and let us help you navigate retirement and develop an investment plan that is tailor made for you!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

Indices are unmanaged measures of market conditions. It is not possible to invest directly into an index. Past performance is not a guarantee of future results. Diversification does not guarantee investment returns and does not eliminate risk of loss.

]]>http://soundfsg.com/managing-risk-in-good-times-and-badWhat's Your Calling?http://soundfsg.com/whats-your-callingThu, 19 Feb 2015 06:00:00 GMTSound Financial Strategies GroupEveryone “does” something. Most people equate what they “do” with what they do for a living. While that is true in many cases, “doing” can be many other things. ]]>Everyone “does” something. Most people equate what they “do” with what they do for a living. While that is true in many cases, “doing” can be many other things. Everyone “does” something. Most people equate what they “do” with what they do for a living. While that is true in many cases, “doing” can be many other things. What about the retiree that volunteers, or the stay at home mom? Whatever it is that you “do”, the next questions should be “why do you do it?” and “who do you do it for?” Is your motivation to earn a living or climb the ladder of success? There is certainly nothing wrong with either of those, assuming there is proper life balance. Do you “do” things for your own personal fulfillment? Maybe you “do” things for a loved one. Again, these are all noble pursuits. But what if the “who” and “why” reasons had a higher purpose? What if the “who” was the Creator of the Universe, and the “why” was a direct command from Him? That will make your afternoon conference call take on a little more meaning won’t it?

The Bible tells us in Colossians 3:23, “Whatever you do, do it enthusiastically, as something done for the Lord and not for men.” That means whether it is a sales call or tucking your kids into bed at night, it should be done for the Lord. Obviously, when doing anything for the Lord, one would do their very best! It also helps motivate us on days when we may be struggling. It might be hard to provide great customer service sometimes, but if we are doing it for the Lord, there’s our motivation, not necessarily to keep our job or for the rude customer in front of us. When serving God is the motivation for what we “do”, the mundane is now a service for the King!

You may be thinking, “If God is all powerful, he doesn’t need what I do to accomplish anything.” You are absolutely right, He doesn’t need what you do, but He does WANT what you do to fit into His plan! This is the most beautiful part of it all. God doesn’t need anything from us, but He loves us so much that He allows us to be included in His plan for the world. Honestly, He can and will use you to fulfil His plan, but wouldn’t it be all the greater to consciously choose to serve Him in all you do? It adds an importance and extra value to all the things we “do” in life!

At Sound Financial Strategies Group, we place a high value on what we “do” for God. We believe that it is our highest calling to serve Him and in turn our clients. If we can be of service to you, we would welcome the opportunity to meet with you.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/whats-your-calling2014 Year in Reviewhttp://soundfsg.com/2014-year-in-reviewMon, 22 Dec 2014 18:00:00 GMTSound Financial Strategies Group2014 has been a fascinating year! We’ve seen headlines throughout the year that took our breath away. From tragedies like the Ebola epidemic and ISIS to the Russian invasion of Ukraine and continued unrest in Israel, our world has seen some terrible events! ]]>2014 has been a fascinating year! We’ve seen headlines throughout the year that took our breath away. From tragedies like the Ebola epidemic and ISIS to the Russian invasion of Ukraine and continued unrest in Israel, our world has seen some terrible events! 2014 has been a fascinating year! We’ve seen headlines throughout the year that took our breath away. From tragedies like the Ebola epidemic and ISIS to the Russian invasion of Ukraine and continued unrest in Israel, our world has seen some terrible events! We’ve endured a year of mid-term election campaigning that saw the Republicans take the Senate and retain the House. We’ve even seen the resurgence of football in the state of Mississippi with both teams in the Top 10! Needless to say, it has been a year of ups and downs!

With all the headlines mentioned, one would think the markets would be all over the place, however, that was not the case in 2014. In fact, some have even said that 2014 was a boring year in the market, with some investors saying they were frustrated. With that being said, the fact that it was boring at times did not bother us at all! 2008- 2012 was about as much fun, angst, and worry to last a lifetime. 2013 was a rollercoaster starting with the fiscal cliff and peaking with market records. So while we are completely ok with a “boring” year, let’s take a look at why some investors are frustrated.

First on a positive note, in the US economy, private nonresidential fixed investments held steady year over year, fixed assets have grown slightly, and employment has grown steadily. US corporate profits have grown, margins are steady, and corporate debts ratios have gone down. This is according to JP Morgan’s market insights charts. Oil production in the US is up and oil prices are down. All of this supports a growing US economy. Of course, none of this predicts the future for neither the economy nor the financial markets. Yet, we like what we are seeing today.

So, why are some “frustrated” with the markets? Notice the attached chart. This is an asset class returns chart published by JP Morgan. This chart shows historical returns for US stock, bonds, real estate, commodities, international developed and emerging markets. Also, notice the white box titled “Asset Allocation.” This category demonstrates an investment mix ratio that is approximately 65/35 growth investments to fixed income investments that is made up of all the investments on this chart. One could say that this is a traditional or standard portfolio mix. Next, notice the returns of this “white box”. One can see that these have traditionally been in the middle of the mix of returns producing a relatively steady return for the last decade.

The S&P 500 (the green box), which is an all-stock benchmark, driven mainly by its large cap stocks. The S&P 500 has performed fairly well for the last 10 years, with 2008 as a major exception. Now, the question that an investor should ask is, can they stand the risk of an all-stock portfolio? Most retirees and near retirees cannot. The Barclays Bond Aggregate is the orange box and is typically to be more conservative in its return. Notice in ’08 this benchmark was in positive territory. A mixture of the S&P 500 and the Barclays Aggregate is often a standard benchmark for an Asset Allocation portfolio. While this may not tell the full story, it is an industry standard. So, again, why the frustration? Year to date in 2014 both the S&P 500 and the Barclays Bond Aggregate has had a greater return than the Asset Allocation portfolio. This may test the theory this year involving the standard school of thought involving being properly diversified or be in the proper risk category.

So we are left with the question of, “should an investor change his risk category?” Should an investor at retirement or near retirement move away from Asset Allocation, move away from diversity, and chase these returns? The answer is a resounding “No!” In the previous 10 years only in 2011 did the S&P 500 and the US Barclays Bond Aggregate both have a greater return than the Asset Allocation category. Also, an investor should never take more risk than they are comfortable with to chase returns. Investment risk is the chance that an investment’s actual return will be different, or lower, than expected. As an investor nears retirement they lose their most important commodity, time. When we have less time, we must mitigate the risk to account for this declining commodity.

The idea of Asset Allocation with the proper risk score is that a portfolio is diversified over multiple asset classes, with the proper mix of growth investments and fixed income investments to meet an investor’s desired risk. The goal is for those investments to grow over time in a way that is a “smoother ride” than the alternative of investing in all growth stocks. This is our goal for our clients’ accounts. Notice the “white box” provides that “smooth ride” for the previous 10 years. Of course, that does not guarantee the next 10 years. However, proper investing is often spent researching the past to position ourselves for the future.

We appreciate the opportunity that our clients give us to do this for you. We never take that trust lightly. We look forward to a great 2015 in which we can continue to help our clients Navigate Retirement!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/2014-year-in-reviewChristmas is the Fix!http://soundfsg.com/christmas-is-the-fixMon, 22 Dec 2014 06:00:00 GMTSound Financial Strategies GroupIt’s been said that Christmas is “the most wonderful time of the year” and we believe that to be true! The lights and decorations make it a beautiful time of year. In spite of that there are some that are stressed, stretched and pulled. ]]>It’s been said that Christmas is “the most wonderful time of the year” and we believe that to be true! The lights and decorations make it a beautiful time of year. In spite of that there are some that are stressed, stretched and pulled. It’s been said that Christmas is “the most wonderful time of the year” and we believe that to be true! The lights and decorations make it a beautiful time of year. In spite of that there are some that are stressed, stretched and pulled. With all the parties, gifts to buy, and charity, some people get down during the Christmas season. How can such a wonderful time or year cause someone to feel overwhelmed and broken? Unfortunately we live in a broken world, a world that has been broken by sin. It’s been that way since all the way back in the Garden of Eden. That brokenness is what steals away the joy of Christmas and replaces it with stress and that overwhelmed feeling.

But we have good news (this is our favorite part)!! There is a fix for the brokenness, and this Fix was born on Christmas Day! In Luke 2:10-11, we read about the announcement of Jesus’ birth: “Suddenly, God’s angel stood among them and God’s glory blazed around them. They were terrified. The angel said, “Don’t be afraid. I’m here to announce a great and joyful event that is meant for everybody, worldwide: A Savior has just been born in David’s town, a Savior who is Messiah and Master. This is what you’re to look for: a baby wrapped in a blanket and lying in a manger.”

Jesus is the answer to that brokenness and He is God’s greatest gift to us! This is the real reason we celebrate Christmas. It’s not about the parties and gifts, it’s about the celebration of a Savior to heal our brokenness!

From all of us at Sound Financial Strategies Group, we want to wish you a very Merry Christmas and hope you will find the true Reason for the Season in Jesus!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/christmas-is-the-fixLessons on Work and Investment from Godhttp://soundfsg.com/lessons-on-work-and-investment-from-godTue, 11 Nov 2014 06:00:00 GMTSound Financial Strategies GroupWhen you think about work, what do you think about? Do you think about the grind, the stress, and the angst? Or do you think about the feeling of accomplishment, the freedom of creativity, and the satisfaction of a job well done?When you think about investments, what do you think about? ]]>When you think about work, what do you think about? Do you think about the grind, the stress, and the angst? Or do you think about the feeling of accomplishment, the freedom of creativity, and the satisfaction of a job well done?When you think about investments, what do you think about? When you think about work, what do you think about? Do you think about the grind, the stress, and the angst? Or do you think about the feeling of accomplishment, the freedom of creativity, and the satisfaction of a job well done?

When you think about investments, what do you think about? Do you focus on the risk, the unknown, and the pain of research? Or do you envision a big return, the joy of outgrowing yourself, and the pleasure of rewards?

Have you ever considered that we get a work ethic and a need to invest from God? These are traits that He shows in scripture and has passed on to us.

In Genesis 1, we see God’s work ethic. We read that God created the Heavens and the Earth from a formless, empty, dark, and deep place; creating all that we see and can ever see. It is amazing to think about. God used His infinite time, talents, and resources to create everything. God rested at the end of His workweek, though He was certainly not tired. He taught us the importance of taking time to rest, so when we return to work we will be refreshed and can work with excellence.

Throughout scripture we see God’s investment strategy. He chose to invest His time, talent, resources, and Himself into His creation. He invested in the humans that he had created in His image. He invested in the talent and the future that He created. He invested in His people throughout the Old Testament, all the while preparing his long-term investment of sending his Son for all mankind, so that all may spend eternity with Him.

In our work, we do the same as image bearers of God. We work, not with grinding stress or angst, but with purpose, creativity, and satisfaction. We invest in our relationship with God and those around us by using our time, talents, and treasures to draw closer to Him and to build up others. Like many investments, adjustment is sometimes required. On more than one occasion He has stepped in to correct His investment and is constantly giving direction. His ultimate action was through His Son Jesus Christ allowing for the correction of humanity’s sins through His death and resurrection.

Timothy Keller wrote in his book Every Good Endeavor: “No everyday work lacks the dignity of being patterned after God’s own work, yet no business megadeal or public policy initiative is so lofty that it can transcend God’s patterns and limitations for work. What’s more God has not left us alone to discover how or why we are to cultivate His creation; instead, He gives us a clear purpose for our work and faithfully calls us into it. “ At Sound Financial Strategies Group we find great purpose and clarity in our faith, and use that in how we work with our clients. We believe that by following God’s example in work and investment that we can further pattern our lives like Him, and that is the ultimate investment strategy!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/lessons-on-work-and-investment-from-godVolatility & the Big Picturehttp://soundfsg.com/volatility-the-big-pictureMon, 03 Nov 2014 06:00:00 GMTSound Financial Strategies GroupFrom time to time, the Financial Advisors at Sound Financial Strategies Group like to take you a little deeper, a peek behind the curtain if you will, and share some of the information and trends we see in the market. One term you may be hearing quite a bit right now is “volatility” in the market and how that impacts the measure of risk aversion. Let’s take a look at the volatility in the market today and see what we can glean from that information.The headlines have not been k...]]>From time to time, the Financial Advisors at Sound Financial Strategies Group like to take you a little deeper, a peek behind the curtain if you will, and share some of the information and trends we see in the market. One term you may be hearing quite a bit right now is “volatility” in the market and how that impacts the measure of risk aversion. Let’s take a look at the volatility in the market today and see what we can glean from that information.The headlines have not been k...From time to time, the Financial Advisors at Sound Financial Strategies Group like to take you a little deeper, a peek behind the curtain if you will, and share some of the information and trends we see in the market. One term you may be hearing quite a bit right now is “volatility” in the market and how that impacts the measure of risk aversion. Let’s take a look at the volatility in the market today and see what we can glean from that information.

The headlines have not been kind to investors in recent days. The market had one of the worst 3-day runs since 2011 and the S&P 500 fell below its 200-day moving average for the first time in nearly 2 years. Large-company stocks and small-cap stocks are having some of their worst calendar years since 1998. Factor in very real concerns of growth in China and Europe, and the troubling headlines of terrorism, infectious diseases, and escalating conflict all over the world and you have a recipe for panic. We believe that in periods of market and news-cycle turmoil, the best thing investors can do is take a moment to step back, take a breath, and assess the situation in historical terms. See the big picture, and how our current predicament fits in the grand scheme of it all.

Based on where we are now, what do we know? First, the rise in volatility did not come as a shock. During the summer, we saw indications from VIX futures that there was strong possibility of a rise in equity volatility in the coming months. (VIX is a measure of implied volatility of S&P 500 index options.) Next, when we look at a longer term behavior pattern of the VIX, we see it is significantly below 2008 levels, and even still lower than levels in 2010 and 2012. That is not to say there shouldn’t be concern, but while US Equity market drawdowns are lower than they were in 2013, they are still well short of the corrections seen in 2010 and 2011.

So where does that leave us? The higher volatility should be somewhat expected, especially considering the uncertainties facing the global economy. While we may see the current market corrections continue, history has shown us those periods of correction since 2008 have the potential to be good buying opportunities. We understand that volatility can bring uncertainty and apprehension to investors, which is why we would invite you to contact one of our Financial Advisors and let us work through it together. We look forward to speaking with you soon!

Equity Investments are inherently risky and fluctuate with changes in market conditions. Indices are unmanaged measures of market conditions and are not available for direct investment. Past performance is not a guarantee of future results. This material contains forward-looking statements including, but not limited to, predictions or indications of future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/volatility-the-big-pictureShould I Retire Now? Or Should I Wait?http://soundfsg.com/should-i-retire-now-or-should-i-waitMon, 20 Oct 2014 05:00:00 GMTSound Financial Strategies GroupMany times in life we have to ask ourselves tough questions. Sometimes we aren’t ready to answer them because we just don’t know. Sometimes we don’t want to answer them because we don’t care much for the answers. ]]>Many times in life we have to ask ourselves tough questions. Sometimes we aren’t ready to answer them because we just don’t know. Sometimes we don’t want to answer them because we don’t care much for the answers. Many times in life we have to ask ourselves tough questions. Sometimes we aren’t ready to answer them because we just don’t know. Sometimes we don’t want to answer them because we don’t care much for the answers. The timing of retirement can be one of those difficult questions you must ask. Should you stay or should you go? Today we are going to look at some of the reasons people are choosing to both stay and go. You may possibly find yourself in a similar situation.

There are some obvious reasons to stay or go in your current career; primarily, can you afford to make a change? We acknowledge that for most people this is the mitigating factor. Many people are choosing to work longer now for a variety of financial reasons. They range from simply needing the funds to make ends meet, or maybe you want to continue working so you will have some extras in your retirement. Health insurance benefits are also a financial reason many people give for why they continue working. These are all extremely important factors to consider when planning when you want to retire. Our financial advisors work with our clients closely to develop a plan that allows you to be the decision maker about your retirement timing, not just your bank account.

An April 2014 Gallop poll revealed some interesting statistics about retirement timing recently. First, people are working longer than they did a decade ago by an average of 3 years. Equally as interesting is the fact that while the average age of retirement is increasing, the average age that people expect to retire is also continuing to grow. For example, in 2014 non-retirees expected to work until age 66, but the actual average age of retirement of those polled was 62. So while people are staying in the workforce longer, it is not as long as they expect to. So, other than financial reasons, why stay?

According to a 2012 AARP survey of workers age 45-74, 91% of those polled responded that they are “proud to work at their company”. 87% responded that they “continue to grow in their work”. 83% “considered their work an important part of who they are”. Finally, 79% responded, “they still have a lot they plan to accomplish in their work”. For many in the later years of their career, they find a great deal of self worth in their work. They fear that if they were to retire, they may fade away. They may ask themselves, “what will I do to fill the time?” or “how will I challenge myself?” The personal fulfillment that one gets from their work can be a powerful force in the decision of when to retire. When you are trying to decide the right retirement time, you need to consider how you will continue to find the challenges and fulfillment you achieve in your current career. The quality of your retirement may depend on it!

At Sound Financial Strategies Group we work with our clients to try and achieve a 360-degree retirement plan. Of course the financial factors have a prominent priority, but we also work to help you plan for how you will fill the hours. What do you want to do with your time? Are you going to work with your church? Maybe you plan to travel? Some of our clients take on consulting work that helps them stay in the workforce, but allows them the freedom to set their own schedule. There is no set defined answer for everyone, but we want to help you identify what will work for you! Give us a call today and let us help you plan your retirement from all angles!

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/should-i-retire-now-or-should-i-waitReflecting on Financial Independence on Independence Dayhttp://soundfsg.com/reflecting-on-financial-independence-on-independence-dayFri, 04 Jul 2014 05:00:00 GMTSound Financial Strategies GroupToday the Fourth of July is a day of celebration filled with barbeque, sports, and fireworks. But in 1776 when the members of the Second Continental Congress signed the Declaration of Independence they were in the beginnings of a war. They were having to consider some very difficult decisions. ]]>Today the Fourth of July is a day of celebration filled with barbeque, sports, and fireworks. But in 1776 when the members of the Second Continental Congress signed the Declaration of Independence they were in the beginnings of a war. They were having to consider some very difficult decisions. Today the Fourth of July is a day of celebration filled with barbeque, sports, and fireworks. But in 1776 when the members of the Second Continental Congress signed the Declaration of Independence they were in the beginnings of a war. They were having to consider some very difficult decisions. These decisions were not made quickly or lightly. It was a painstaking process that had to be planned, studied, and calculated. In order to achieve independence, sacrifices had to be made.

We’ve all heard the term “Financial Independence”. What exactly is Financial Independence? Many people define it as having enough money to maintain your lifestyle without having to work. While that may be the “technical” definition, you should ask yourself, “What is Financial Independence to me? “

It’s easy to say, “I want to be Financially Independent,” but how do you achieve it? Financial independence is achieved much the same way our country was founded; planning, hard work, and sacrifices.

First, you make a plan. We can all imagine General Washington making war plans throughout the Revolution. Yet his chief of staff Alexander Hamilton actually studied Governments and Economics throughout the Revolutionary War so that they could be ready to form the US Government when they won the war. That was audacious planning. You should plan the same way, years in advance. Begin by setting goals. Consider what do you want to achieve, identify what is standing in your way, and determine how to remove it. Develop a plan to work through the things that are preventing you from you financial independence. This may mean sitting down with an advisor (your own chief of staff) to help you develop a plan of action. Whether you need to eliminate debt, need advice on your investments, or options regarding your 401(k), an advisor has the training and knowledge to help you create a plan. This is generally the easiest part but it leads to the next step, which is sometimes more challenging.

Work the plan. The colonists could see what was standing in the way of the freedom they desired. They had a choice to make, sit idly by and do nothing or plan a course of action to achieve that freedom. The Signers of the Declaration stated, “we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.” Thankfully for us, they planned a course of action. More importantly though, they executed that plan and stuck with it. Just think how different things would be for you on Friday if the signers of the Declaration of Independence decided, after everything that had taken place up to that moment, NOT to sign it. The history books would certainly read much differently. Financial Independence will not necessarily come easy, it will take work, but it will be worth it. This leads us to the final step…

Sacrifice. The Signers of the Declaration understood sacrifice. These men and countless other patriots sacrificed their lives, families, and property to this great cause. Your financial plans will most likely call for you to make some sacrifices. We are not saying you should sacrifice time with family, your health, or your “life”. We are talking about financial sacrifice. This can be sacrifice such as living within your means, even a little below, during your working years. Financial sacrifice is delaying the financial gratification of today for future financial gratification. Much like our forefathers sacrificed and years later formed this great nation, your financial sacrifices now will be reflected in your financial independence years down the road.

If you have read this today and thought to yourself, “I wonder what it would take for me to be financially independent?” we would welcome the opportunity to visit with you about it. If you are ready to take the first step towards financial independence, give us a call today for a free, no obligation, financial analysis consultation. All of us here at Sound Financial Strategies Group want to wish you a great Independence Day filled with fun, family, and celebration. We hope you will take a moment to consider your financial independence, and look forward to the opportunity of speaking with you soon.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/reflecting-on-financial-independence-on-independence-dayDoes history really repeat itself?http://soundfsg.com/does-history-really-repeat-itselfWed, 21 May 2014 05:00:00 GMTSound Financial Strategies GroupDid your history teacher tell you that those who don’t study history are doomed to repeat it? So when we look in the past, are actions and results eerily similar to today?This is true in economics as well as history; economies and markets cycle, repeating themselves. Don’t get the wrong idea; no one can exactly predict the future by studying the past. ]]>Did your history teacher tell you that those who don’t study history are doomed to repeat it? So when we look in the past, are actions and results eerily similar to today?This is true in economics as well as history; economies and markets cycle, repeating themselves. Don’t get the wrong idea; no one can exactly predict the future by studying the past. Did your history teacher tell you that those who don’t study history are doomed to repeat it? So when we look in the past, are actions and results eerily similar to today?

This is true in economics as well as history; economies and markets cycle, repeating themselves. Don’t get the wrong idea; no one can exactly predict the future by studying the past. However, you may make an educated guess. So let’s look into the very distant past, The Great Recession, Jerusalem circa 445 BC. Nehemiah is Governor of Jerusalem under Persian rule. A terrible famine and depression is taking place. People have borrowed money against their fields and vineyards. Others have sold themselves and even their children into slavery. These Hebrews once freed from Babylon gazing brightly into the future, now worried about their next meal.

As we take an emotionless look at history, what do we see? The culprits were, in part, a nasty famine and yes a steep Persian tax. We also see greed. Instead of banding together in mutual support we read in Nehemiah 5 of loan sharking. We can read between the lines that some took unfair advantage of the situation to charge exorbitant interest and wrongfully hold their debtors assets.

Let’s be aware of a few important points in our own Great Recession. Though the asset classes and interest rates are different, we all know of examples of greed. Also, God’s word is not against loans, interest, investments, and return. However, God’s word is always against greed and taking unfair advantage of the poor and needy. Nehemiah declared “what you are doing is not good, should you not walk in the fear of our God?” He took drastic steps, instructing the lenders to stop interest and give back the security of their loans. The borrower still owed the money but the contract was re-written to give them a break.

Nehemiah made it clear that these were God’s instructions; “thus may God shake out every man from his house…” This was not only the best social route; it was also the best business route. These bad debts were salvaged and the money was repaid.

On top of this Nehemiah, the Governor, charged no taxes, and took no salary. He knew that leadership was best by example and that he answered to God. As we all do.

Wow, there is so much to glean from just a few verses in Nehemiah 5. We should be careful not to force these business and political actions into current events. However, God’s instructions were clear for them and for us today. There is a strong warning against greed, encouragement against despair, action for all of us to take, and an example to lead from the front. Paul wrote this well when he wrote to Timothy “instruct them to do good, to be rich in good works, to be generous, and ready to share.”

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/does-history-really-repeat-itselfPin the tail on the Donkeyhttp://soundfsg.com/pin-the-tail-on-the-donkeyMon, 31 Mar 2014 05:00:00 GMTSound Financial Strategies GroupPicture yourself at a birthday party when you were a kid. A picture of a donkey is hanging on the wall and someone blindfolds you. They spin you in circles until you’re dizzy, hand you the tail of the donkey, now it’s your job to get it as close to the right spot as possible. ]]>Picture yourself at a birthday party when you were a kid. A picture of a donkey is hanging on the wall and someone blindfolds you. They spin you in circles until you’re dizzy, hand you the tail of the donkey, now it’s your job to get it as close to the right spot as possible. Picture yourself at a birthday party when you were a kid. A picture of a donkey is hanging on the wall and someone blindfolds you. They spin you in circles until you’re dizzy, hand you the tail of the donkey, now it’s your job to get it as close to the right spot as possible. You’ve played this game and you got closest when one of your friends told you when you were headed the wrong way or caught you when you lost your balance and got you back on track.

Most people make their investment choices when they first contribute to their 401(k) and never look at it again i.e. the blindfold. They want to do well and they do their best to get the “tail” as close as they can yet it’s hard to do when they can’t see what they’re aiming for.

Here’s the difference, you can look and see what you’re aiming for. You don’t have to be blindfolded. You can and should look at the balance of your account at least yearly, preferably quarterly to make sure you’re on track. Why is it important?

When you first started your 401(k) you may have allocated the account, by percentages, between stocks and bonds. Let’s say for example that you allocated 70% to stocks and 30% to bonds, based on your risk tolerance and goals (a.k.a. risk score). Fast forward 10 years. Is your 401(k) still at that target balance of 70% stocks 30% bonds? The chances are nil.

Why wouldn’t it be? How can it become out of balance, YOU haven’t changed a thing? Over time, if stocks outperform bonds the value of the stocks becomes a greater percentage of your portfolio. The increased percentage in stocks can lead to increased risk in your 401(k), which means you are taking on more risk than you originally set out to. Selling the stock increases and reinvesting in bonds or vice versa will bring your 401(K) back to your initial allocation.

The good news is you don’t have to play pin the tail on the donkey with your 401(k) and retirement. However, without that friend helping to guide you when you’re getting off track it’s up to you to keep an eye on things. The question is, are you really able and ready to commit to keeping your eye on the account?

Sitting down with an advisor is an important part of transitioning out of the work force. Our goal is to educate our clients, to learn your goals and partner with you to achieve those goals. We are here to help you navigate retirement. Call for an appointment or use the convenient online form to request information. Idiomatically, the term Pin the tail on the donkey can be used derisively for any assigned activity which is pointless or for which a person has been handicapped (blindfolded), according to Wikipedia. Play pin the tail on the donkey with your kids or grand kids, not your retirement.

The information provided is for educational purposes only and should not be construed as an investment recommendation. All investments involve risk including the potential for loss of principal invested.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/pin-the-tail-on-the-donkeyAre You Ready To Retire? …Getting your 401(K) in order is an important stephttp://soundfsg.com/are-you-ready-to-retire-getting-your-401k-in-order-is-an-important-stepWed, 12 Mar 2014 05:00:00 GMTSound Financial Strategies GroupLooking out over your future – is retirement 10 years, or less, away? There are many things to consider before you can pull the trigger on setting a retirement date. What do you need to maintain your lifestyle after you disengage your alarm clock?One of the main reasons Sound Financial Strategies Group exists is to educate the public on their retirement options. ]]>Looking out over your future – is retirement 10 years, or less, away? There are many things to consider before you can pull the trigger on setting a retirement date. What do you need to maintain your lifestyle after you disengage your alarm clock?One of the main reasons Sound Financial Strategies Group exists is to educate the public on their retirement options. Looking out over your future – is retirement 10 years, or less, away? There are many things to consider before you can pull the trigger on setting a retirement date. What do you need to maintain your lifestyle after you disengage your alarm clock?

One of the main reasons Sound Financial Strategies Group exists is to educate the public on their retirement options. This is a huge decision and you shouldn’t navigate the passage between work and retirement alone.

We offer an individualized approach to planning for retirement. But there are a few things that are universal, like making sure your 401(K) is in order. Here are six things to consider when your are reviewing your 401(K):

Review Your Investment Mix – Your investment mix, that is the percentage that is in stocks verses bonds, should change over time. As you approach retirement, many investors adjust their portfolios to decrease exposure to the stock market.

Bond Rate Sensitivity Check – Not all bonds are created equally, and outside forces can make certain bonds a risky investment. Long-term bonds could be less than desirable if interest rates rise.

Variety – Different types of stocks react differently to pressures; a variety of stocks and bonds is designed to hedge against drastic shifts in the market

Complementary Accounts – Do you have an old 401(K) from a previous employer? Or an IRA? All of your accounts need to be positioned to complement each other, all with the goal of retirement income in mind.

Get Professional Advice – The financial landscape is continually shifting, new laws come in to play with very little publicity, and if you are close to retirement there is a smaller window for adjustments. All of these reasons, and more, are why recommend a professional review of your retirement income plans and options. Call SFSG, at 877-462-3744 and make an appointment, we can help you navigate your retirement.

Neither diversification nor rebalancing can ensure a profit or protect against a loss. Bonds are subject to interest rate, market, inflation and credit risks.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital..

]]>http://soundfsg.com/are-you-ready-to-retire-getting-your-401k-in-order-is-an-important-stepFive Qualities To Look For In A Financial Plannerhttp://soundfsg.com/five-qualities-to-look-for-in-a-financial-plannerMon, 02 Dec 2013 06:00:00 GMTSound Financial Strategies GroupThe relationship you have with your Financial Advisor is a very personal one. You not only confide your financial information; you share your families’ history and goals. There are few people who know you as well as your Financial Planner or at least that is how it should be.There is not a one-size-fits-all strategy for achieving retirement goals and, to work toward that goal, you need a partner that understands your specific needs. ]]>The relationship you have with your Financial Advisor is a very personal one. You not only confide your financial information; you share your families’ history and goals. There are few people who know you as well as your Financial Planner or at least that is how it should be.There is not a one-size-fits-all strategy for achieving retirement goals and, to work toward that goal, you need a partner that understands your specific needs. The relationship you have with your Financial Advisor is a very personal one. You not only confide your financial information; you share your families’ history and goals. There are few people who know you as well as your Financial Planner or at least that is how it should be.

There is not a one-size-fits-all strategy for achieving retirement goals and, to work toward that goal, you need a partner that understands your specific needs. So, if you are looking for someone to help you navigate the transition from work to retirement there are characteristics to look for in an Advisor.

An Advisor should, on their own initiative, start a conversation about your retirement goals. There should be opportunities for you to share any changes that should occur in your life that could affect your goals.

You should feel that your advisor has your best interest at heart and makes decisions based on you and you alone.

No one can guarantee a certain return on your investment. Your advisor should be able to share what their history is with regard to the market.

All fees and expenses should be clearly laid out and clearly understandable.

You don’t want a professional who blinds you with terminology without any attempt to educate you about the process. Ask if the Advisor offers opportunities for you to learn and understand your personal retirement plan. It’s important to become a partner in the process. A great advisor won’t object to you becoming educated.

The advisors at Sound Financial Strategies Group use these five points as a foundation when building a relationship with a client. The first step is a personal meeting so that they can begin to understand your retirement goals and needs. Helping you Navigate Retirement starts with a simple call to 601-856-3825. Hopefully we'll talk soon.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/five-qualities-to-look-for-in-a-financial-plannerAre You In The Majority?http://soundfsg.com/are-you-in-the-majoritySun, 29 Sep 2013 05:00:00 GMTSound Financial Strategies GroupThere was recently an article on the website, The Wall Street Cheatsheet, that postulates that the majority of Americans lack financial planning. In fact, they cite six reasons to prove their theory.More than 6 in 10 Americans admit their financial planning needs improvement, an increase from the figure recorded in 2012. The main excuse respondents gave for their poor planning skills is not having enough time. ]]>There was recently an article on the website, The Wall Street Cheatsheet, that postulates that the majority of Americans lack financial planning. In fact, they cite six reasons to prove their theory.More than 6 in 10 Americans admit their financial planning needs improvement, an increase from the figure recorded in 2012. The main excuse respondents gave for their poor planning skills is not having enough time. There was recently an article on the website, The Wall Street Cheatsheet, that postulates that the majority of Americans lack financial planning. In fact, they cite six reasons to prove their theory.

More than 6 in 10 Americans admit their financial planning needs improvement, an increase from the figure recorded in 2012. The main excuse respondents gave for their poor planning skills is not having enough time. Not enough interest, confusion, and not knowing where to find the right help were also commonly mentioned barriers. Compared to last year, more Americans said that the single greatest barrier was confusion and a lack of time.

Almost 50 percent Americans are either “informal” financial planners or have no plans or goals at all to straighten their finances.

Only one-third are “disciplined”and very few, or 16 percent, say they are “highly disciplined.”Compared to 2012, there are now more non-planners and fewer disciplined planners.

Men are more likely than women to say they are “disciplined” financial planners. Members of Generation Y, especially the youngest members of Generation Y, men, and those with the highest assets are more likely than their counterparts to consider themselves disciplined financial planners. So while 24 percent of Generation Y respondents said they were disciplined financial planners, only 16 percent of Generation X, 14 percent of the Baby Boomer generation, and 15 percent of the Mature Generation said the same.

Three in 10 Americans,or 31 percent of respondents, say they find the immediacy of society today — characterized by 24/7connectivity— to be distracting.

More than one and four, or 26 percent, of Americans either “often” or “always” feel too busy to think about long-term goals.

Do any or all of these sound like you? Make an appointment with a Financial Advisor at Sound Financial Strategies today.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/are-you-in-the-majorityWhat Does the Bible say about Money?http://soundfsg.com/what-does-the-bible-say-about-moneyFri, 16 Aug 2013 05:00:00 GMTSound Financial Strategies GroupWow, what a question. It may be easier to write about what the Bible does not say about money. There are approximately 2300 verses in the Bible discussing money. ]]>Wow, what a question. It may be easier to write about what the Bible does not say about money. There are approximately 2300 verses in the Bible discussing money. Wow, what a question. It may be easier to write about what the Bible does not say about money. There are approximately 2300 verses in the Bible discussing money. It includes dos, don’ts, investments, responsibilities, giving and many other topics. Yet the Bible was completed 2000 years ago, so paper currency, global financial markets, credit cards, and many other devices, ideas, and schemes were not even thought of much less written about. However, it would be very wrong to discount the Bible as irrelevant today for these or any other reasons. God’s Word gives us the instructions that we need, yet not always what we want.

The following are a few basics that we should to know from the Bible regarding money.

God owns it all. He is God after all, The Creator of everything. It only makes sense that he owns it all. “For all the world is mine and everything in it.” Psalms 50: 12. Therefore, we should react as stewards, who manage another’s property, finances, or other affairs. A person with a fiduciary responsibility has the duty to manage the assets for the benefit of the person who owns them. Therefore, since God owns it all, we are stewards of the assets under our control. Certainly, we use the word “ownership” when referring to our money, property, and other assets. However, the truth according to the Bible is that it’s God’s and we are stewards. This is great news. God is the owner and in ultimate control. We have direct instructions from Him. Therefore, our success or failure depends on our relationship and meeting our responsibility to Him. We are judged by His standards, not the World’s standards. That is again great news, because His standards are set and given to us in His Word. The World’s standards of success or failure are different with each person, it’s a sliding scale of success or failure, and it’s a broken standard with a broken moral compass. Praise God, we have exact standards to meet with exact instructions to meet them. A warning here, many in the financial industry may not agree with this article at this point. However, this article is about truths according to God’s Word.

We are responsible to God. Jesus told many stories about money. He knew that faith that had not reached someone’s wallet had not reached their heart. He said “If you are faithful in little things, you will be faithful in large ones. But it you are dishonest in little things, you won’t be honest with greater responsibilities. And if you are untrustworthy about worldly wealth, who will trust you with the true riches of heaven? … No one can serve two masters. For you will hate one and love the other; you will be devoted to one and despise the other. You cannot serve both God and money.” Luke 16: 10-13.

God knows that we must manage our money. He expects, encourages, and rewards us for managing it His way. According to the Bible, this is the surest way for us to be successful ourselves.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/what-does-the-bible-say-about-moneyRetirement Planning, What are the Basics?http://soundfsg.com/retirement-planning-what-are-the-basicsThu, 11 Jul 2013 05:00:00 GMTSound Financial Strategies Groupre·tire·ment noun i-ˈtī(-ə)r-mənt1. a : an act of retiring : the state of being retired b : withdrawal from one's position or occupation or from active working life c : the age at which one normally retires retirement in May> 2 : a place of seclusion or privacyIf you could work out your retirement perfectly, what would it look like? Each person answers this question differently. ]]>re·tire·ment noun i-ˈtī(-ə)r-mənt1. a : an act of retiring : the state of being retired b : withdrawal from one's position or occupation or from active working life c : the age at which one normally retires retirement in May> 2 : a place of seclusion or privacyIf you could work out your retirement perfectly, what would it look like? Each person answers this question differently. re·tire·ment noun i-ˈtī(-ə)r-mənt

1. a : an act of retiring : the state of being retired b : withdrawal from one's position or occupation or from active working life c : the age at which one normally retires retirement in May> 2 : a place of seclusion or privacy

If you could work out your retirement perfectly, what would it look like? Each person answers this question differently. Some people want to travel the world, some want to travel just in the US, some want to stay at home. Some manage a garden, some manage grandkids, and some manage a second career.

What will your retirement be like? What is your definition of retirement? What is your personal retirement story?

Now, how will you make that happen? What is your plan? Day 1 of retirement, what happens? Traditionally it has been taught that there are three legs of the retirement stool; Pension, Social Security, and personal savings. Like any three legged stool, take one leg away and the stool fails. These three legs are referring to a retiree’s income not a complete plan. Actual planning for retirement includes three areas: income, expenses, and a “catch all” savings.

Income: How much money will you have coming in at retirement? Often a “rule of thumb” is taught regarding how much do you need, something around 70% of your gross pay. However, that is not the real question. The real question is specifically, how much income will you have. For many retirees today, your income will come from Social Security, a company pension, and your own savings, often a 401k. Therefore, to exactly plan for retirement you will need to know these amounts. You can’t control Social Security or your company pension, so you must plan for them. However, you can control your savings, so act on that.

Expenses: How much money are you going to spend? This task is very closely related to the dreaded task of budgeting. Think about this, how much do you spend on: home mortgage, car notes, utilities, groceries, medical, TV/internet/cell, credit cards, entertainment, mad money…? Must you have an exact amount calculated? NO, for the most part. However, you must know an accurate monthly projection. Often in planning we use a client’s current monthly take home income to have a simple approach to get started.

Savings: This is the catch all category. This is the amount of money that leads to an emergency fund, a travel account, or an investment account that grows your net worth. These accounts allow you to deal with the financial crises in life, to have fun, be charitable, and grow net worth. They can be as flexible as your money and imagination allow.

Ask yourself; are you really planning for retirement? Are you controlling what you can control? Are you planning for what you can’t control? Do you know how much monthly income that you can generate in retirement? Do you know your monthly expenses? Have you planned your personal retirement story? If not get started today; you could really enjoy the outcome.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/retirement-planning-what-are-the-basicsWhat does the Bible say about Retirement?http://soundfsg.com/what-does-the-bible-say-about-retirementTue, 18 Jun 2013 05:00:00 GMTSound Financial Strategies GroupThe Bible has a lot to say about money. There are approximately 2300 verses on this topic. Debt is covered in some very specific ways in the Bible. ]]>The Bible has a lot to say about money. There are approximately 2300 verses on this topic. Debt is covered in some very specific ways in the Bible. The Bible has a lot to say about money. There are approximately 2300 verses on this topic. Debt is covered in some very specific ways in the Bible. Investments are covered in some detail. Our Lord Jesus had a lot to say about investing, giving, and our attitude towards money.

But what does the Bible say about retirement? Does it tell us that we must work until we drop? Does it give us permission to work a career then live a life of leisure? The answer is neither. To my knowledge, there is only one section of verses that gives specific instructions about retirement:

The Lord also instructed Moses, “This is the rule the Levites must follow: They must begin serving in the Tabernacle at the age of twenty-five, and they must retire at the age of fifty. After retirement they may assist their fellow Levites by serving as guards at the Tabernacle, but they may not officiate in the service. This is how you must assign duties to the Levites.” Numbers 8: 23-26.

These are very specific retirement instructions for the Priests of Israel. Wait a minute; does this mean that the Bible is telling us to retire at age 50? No, sorry, it is not saying that to you or me. We must look at this in context of when it was written, and then how does it instruct us today.

These Levites had a very physical job and a job that required maturity. In short, their job required a young man’s strength and an old man’s wisdom, not an easy mixture. The Levite’s job was to perform the sacrifice in Israel, requiring the muscling and control of animals many times over. Also, they were the ministers, pastors in their community, caring for the people. At age 50, these men retired from the full service of officiating in the Tabernacle to assist their fellow Levites. Note, these men did not completely retire at age 50, but from the work of performing the sacrifice. At this age, they were full of wisdom, but probably had a few aches and pains that the strain of service made worse. They would semi-retire to an honored office, still ministering, both to the younger Levites and the people in their community. Matthew Henry wrote: “If God’s grace provides that men shall have ability according to their work, man’s prudence should take care that men have work only according to their ability. The aged are most fit for trusts, and to keep the charge; the younger are most fit for work, and to do the service.”

What should we learn from this scripture today? First, God intends for us to work. Yet, He does not intend for us tear down our bodies beyond repair. Second, we can read in this passage specific permission to retire. Third, this retirement is not a lazy retirement in which we do nothing. These men still had work to do. They were needed, and they needed to be needed.

We spend years in our careers so that we can provide for our families and raise them carefully. All the while we are looking forward to the day that we get to retire. At our firm, we specialize in helping our clients prepare for this retirement. Then we manage that retirement money. This is our work! We encourage you to seriously, prayerfully, even dream-fully consider your retirement. We also strongly encourage you to be active in your retirement, serve others. Someone desperately needs you to minister to them, and you need to be needed.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

]]>http://soundfsg.com/what-does-the-bible-say-about-retirementWhy does the market keep going up?http://soundfsg.com/why-does-the-market-keep-going-upTue, 21 May 2013 05:00:00 GMTSound Financial Strategies GroupThis is a popular question these days. Of course, no one is really complaining when they ask it. It’s like having cool weather in the middle of August when it should be 102’ F and 93% humidity. ]]>This is a popular question these days. Of course, no one is really complaining when they ask it. It’s like having cool weather in the middle of August when it should be 102’ F and 93% humidity. This is a popular question these days. Of course, no one is really complaining when they ask it. It’s like having cool weather in the middle of August when it should be 102’ F and 93% humidity. You know that you should just enjoy it and not really question it.

Yet, it is our job to ask questions like “why is the market going up?” The answers to this question can be both broad and pointed. You could proof text your answers, meaning form your own opinion and go look for “expert” writings to support your opinion. You could just enjoy the ride, not looking out for the risks associated with it, not our recommendation. Or you could just look at all of the doomsday scenarios that say the market will crumble any day now, also not our recommendation. This article is not intended to give a detailed economic or financial market thesis, which would bore you. Nor intended to predict what will happen in the future, we don’t have a crystal ball.

In short, we think that the market is going up because the economy is growing and the Fed still pushing money into it. Three statistics support this:

1st quarter US GDP, the broad estimate for economic activity, grew at 2.5% annualized according the U.S. Department of Commerce. This is showing that the output of goods and services in the U.S. is growing at a modest pace, not knocking the cover off the ball, not striking out, but just steadily hitting singles.

The weekly jobless claims number is trickling down. On May 4, 2013, this number was 323,000, down over the previous four weeks, according the U.S. Fed. This is not the unemployment report that is often talked about and debated, which stands at 7.5% in April, again according to the U.S. Fed. This is the weekly number of new people filing for unemployment. It has been slowly dropping, showing that people are staying employed.

What is the U.S. Fed doing? In short the U.S. Fed’s job is to combat inflation and unemployment in our economy. This is called the “dual mandate” enacted by Congress in 1977. Currently the Fed is pushing money into the U.S. economy by keeping its interest rates low and purchasing $85 B a month in bonds (QE3). Stacks of articles are being written for and against these practices. Certainly, a lot of what the fed is doing has never been tried before. Yet, remember a lot of what our country has done throughout its history has never been tried before. So, a new practice is not bad or good just because it’s new. There is an old Wall Street saying and it’s repeated throughout the world, “Don’t fight the Fed.” Many of the World’s central banks are following the U.S. Fed and pushing money into their economies, supporting global financial markets.

Back to our original question, why does the market keep going up? It is always hard to give a definitive answer, but these three points give positive support. Financial markets do not go up in strait lines; they bump along sideways, swoon, dip, and grow. We expect no different from this market. In the good times and the bad of both the financial markets of the world and life, we are reminded of a wonderful verse in the Bible: For everything there is a season, a time for every activity under heaven... A time to plant and a time to harvest…A time to tear down and a time to build up… A time to grieve and a time to dance. Ecclesiastes 3:1-4. God’s Word tells us that everything has its time, markets and economies are no different.

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital. To determine which investments may be appropriate for you, consult with your financial professional.

]]>http://soundfsg.com/why-does-the-market-keep-going-upThe Fishermanhttp://soundfsg.com/the-fishermanThu, 16 May 2013 05:00:00 GMTSound Financial Strategies GroupA successful executive, who graduated from Harvard with an MBA, was feeling very stressed from the daily grind of running his company. He decided to get away for a few days and headed to Mexico on vacation. One morning, while out jogging the beach, he noticed a Mexican fisherman with a beautiful string of fish.“That’s a fine catch you have there,” said the successful businessman. ]]>A successful executive, who graduated from Harvard with an MBA, was feeling very stressed from the daily grind of running his company. He decided to get away for a few days and headed to Mexico on vacation. One morning, while out jogging the beach, he noticed a Mexican fisherman with a beautiful string of fish.“That’s a fine catch you have there,” said the successful businessman. A successful executive, who graduated from Harvard with an MBA, was feeling very stressed from the daily grind of running his company. He decided to get away for a few days and headed to Mexico on vacation. One morning, while out jogging the beach, he noticed a Mexican fisherman with a beautiful string of fish.

“That’s a fine catch you have there,” said the successful businessman. “How long did it take you to catch them?”

“About 30 minutes” was the fisherman’s reply. “Why did you stop?” asked the businessman. “I have all I need for my family for the day.” said the fisherman. “If you don’t mind sir, tell me a little about your day.” the Harvard grad said to the fisherman. “Well, I sleep late, have a cup of coffee with my wife, go fishing for about 30 minutes, come home for lunch, take a little siesta in the afternoon, play with my kids in the evening, and at night I gather my friends around the fire and we sing songs and tell stories”. “Awesome!” exclaimed the businessman. “That means you have plenty of time to build an incredibly profitable company!” “What do you mean?” asked the fisherman. “Well, with all of that extra time you could greatly increase the number of fish you are catching every day.” “Then what?” asked the fisherman. “You could then sell the extra fish and buy you a bigger and better boat!” “Then what?” asked the fisherman. “A bigger and better boat would allow you to double or triple the number of fish you are catching!” “Then what?” asked the fisherman. “With the proceeds from the sale of the extra fish, you could eventually own a fleet of boats!” “Then what?” asked the fisherman. “You could build your company up and move it to Mexico City or even New York!” “Then what?” asked the fisherman. “We could take it public and you would be an instant millionaire!” “Then what?” asked the fisherman. “Then what?!?!” exclaimed the businessman. “Then you could retire and do whatever you want to do. What would you do if you could retire?” “I would sleep late, have a cup of coffee with my wife, go fishing for about 30 minutes, come home for lunch, take a little siesta in the afternoon, play with my kids in the evening, and at night I gather my friends around the fire and we sing songs and tell stories”.

The moral of the story:

1) Be content

Give serious thought to what your retirement looks like

Don’t be so focused on the destination that you forget to enjoy the journey

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.